There are John Le Carre plots less tangled than this! The Forest Stewardship Council (FSC) barring Asia Pulp and Paper (APP) from using the FSC logo; alleged coated paper dumping in the U.S. complete with lawsuits and government rulings not to impose punitive tariffs; concerns over rainforest destruction in Indonesia; Office Depot, and now Staples, severing contracts with APP -- how will it all end?

According to industry expert Dick Gorelick, who always has great insight, "The Chinese paper industry has been criticized for polluting the environment at many small, inefficient mills, particularly mills that manufacture paper from straw and other crops, materials that are not as easily recycled as wood pulp. Consequently, the Chinese government is shutting down many small mills and consolidating its paper industry."

"This has caused a ripple effect. Demand for wood pulp in China has increased sharply, creating sharply higher prices. The effect of substantially increased costs is now being felt in China itself. It is anticipated that the result will soon be higher prices for books produced in China for U.S. publishers."

02/27/2008