A trade representative in the United States has started a Nafta inquiry to determine if improper subsidies were given to Port Hawkesbury Paper, in Nova Scotia, Canada.
According to Forest Talk, the Nova Scotia government provided the new owners of the mill with a $124.5 million in subsidies. Moreover, they provided an additional $36.8 million to keep the mill hot idled until a sale agreement could be reached.
Ron Kirk, United States Trade Representative, says that he will request information from the Canadian and Nova Scotian governments about the assistance given to the mill.
Kirk is concerned about job losses in Maine, where a mill producing the same grade of supercalendered paper as Port Hawkesbury Paper. It employs about 240 people and produces 220,000 tons a year.
The US is determined to investigate if the deal is compliant with Canada’s commitments under the North American Free Trade Agreement and the World Trade Organization, and will raise the question later at a WTO meeting next month.
