US trade body rules Sri Lankan paper file folders injure US industry

Sri Lanka
By Editor_1

COLOMBO – The US International Trade Commission (USITC) has ruled that imports of paper file folders from Sri Lanka are materially injuring a US industry, after determining that the products were being sold in the American market at less than fair value.

The unanimous decision by Chair Amy A. Karpel and Commissioners David S. Johanson and Jason E. Kearns paves the way for the US Department of Commerce to impose antidumping duties on file folder imports from Sri Lanka. Commerce will now issue an official order applying duties designed to offset the unfair pricing practices.

The ruling concludes an investigation under case Inv. No. 731-TA-1719 (Final), USITC Publication 5668, which examined whether Sri Lankan exporters were undercutting US producers by selling file folders at artificially low prices. The Commission’s full public report, containing detailed findings and the commissioners’ views, will be released by October 16, 2025, on the USITC website.

The case stems from petitions filed by US manufacturers alleging that imports from Sri Lanka were being “dumped” – sold at prices below production cost or below domestic market prices – thereby harming the local industry. Under US trade law, if both the Commerce Department and the USITC find evidence of dumping and injury, antidumping duties must be applied.

Sri Lanka, though a relatively small player in the global paper products sector, has become a notable exporter of office supplies such as file folders to the US in recent years. The Commission’s decision means these exports will now face additional tariffs, likely raising their price in the American market.

Antidumping cases have been a recurring point of tension in US trade policy, particularly with developing countries that rely on low-cost exports. For Sri Lanka, which has been seeking to diversify its export markets amid economic recovery, the ruling represents a setback for one of its niche manufacturing sectors.

-ENCL

Editor_1
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