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The American-Canadian Newsprint Paper Industry and the Tariff

Journal of Political Economy 1922 30(5), 681-697 open access
In 19 ii for the first time newsprint paper was admitted free of duty from Canada. Since then it has remained on the free list. During this same period the United States has moved from self-sufficiency in its newsprint paper supply to dependence on Canada for more than one-third of the paper it uses for printing its newspapers. Hence it is of significance to consider what would be the effect of removing the duty on the present relations of Canada and the United States with respect to newsprint paper. Provisions of the tariff law.-The United States act of July 26, i9Ii, providing for reciprocity with Canada upon the passage of similar legislation by Canada, put newsprint paper, imported into the United States from Canada, on the free list. This was accomplished by Section II, which was unconditional and independent of the reciprocity provision of the act, and which remained on the statute books of the United States. The benefit of this section of the act was extended two years later by court construction to Germany and certain other European nations under most-favored-nation treaties.' This extension to other countries besides Canada of the privileges of sending newsprint, as well as wood pulp and other cheap grades of paper, duty free into the United States, is of interest as one of the rare instances of the United States granting substantial concessions to other countries because of her most-favored-nation treaties. A little later, in I9I3, newsprint was placed unconditionally on the free list by the tariff act of I913, which is in force at the present time (June, I922). Growth of the Canadian industry.-Placing Canadian newsprint on the free list has been a factor in the great expansion of