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U.S. trade officials will investigate whether the $124.5-million government aid package given to a Nova Scotia mill conflicts with World Trade Organization agreements.

The Bangor Daily News reported that U.S. Trade Representative Ron Kirk wrote in a letter to U.S. Rep. Mike Michaud that his office would expedite an investigation of the paper mill deal.

In late September, Michaud called on Kirk to conduct an investigation of the deal, which observers have said could affect Maine and U.S. paper companies, particularly those like the UPM mill in Madison, which produces the same type of supercalendered paper as the Nova Scotia mill in Port Hawkesbury.

The manager of the Madison mill told the BDN that he is pleased with the investigation effort.

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