US ruling against Canadian paper import subsidies gets mixed response
The U.S. Department of Commerce’s ruling to counteract subsidies for Canadian paper imports has received a mixed response from leaders representing two paper mills in Maine.
The Bangor Daily News reported that the Commerce Department made a preliminary decision this week to start collecting duties on supercalendered paper imported fromCanadian companies. The decision comes after Madison Paper Industries in Madison and Verso Paper Corp. filed a complaint in March saying that Canadian subsidies allowed a Nova Scotia mill to produce cheaper paper, putting American competitors at a disadvantage.
Russ Drechsel, CEO of Madison Paper Industries, hailed the Commerce Department’s action as “an important decision for the U.S. paper industry,” and a union leader representing workers there said it will help preserve jobs.
But the decision is being criticized by Catalyst Paper Corp., the Canadian company that purchased the former NewPage mill in Rumford last year. As part of the Commerce Department’s decision, an 11.9% duty is being imposed on Catalyst and other Canadian exporters.
Joe Nemeth, Catalyst’s CEO, said his company “rejects the allegation that we’ve received government subsidies, and we’re confident a full and fair investigation would confirm this.” The company is seeking an expedited review of the final ruling.
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