Port Hawkesbury Paper files NAFTA appeal against 20.18% tariff on exports

HALIFAX (Scrap Monster): Nova Scotia-based Port Hawkesbury Paper has filed a North American Free Trade Agreement (NAFTA) appeal against the final decision announced Wednesday by the US International Trade Commission (ITC) upholding the 20.18% tariff on exported glossy paper products from the mill. The other affected mills are Irving Pulp and Paper in New Brunswick and Resolute Forest Products in Quebec.

The trade action by the US follows complaint filed by two domestic US mills, alleging that subsidized imports of supercalendered paper from Canada had caused material injury to US industry. The preliminary investigation conducted by the US Department of Commerce (DOC) authorities had concluded that Canadian paper exports were unfairly subsidized. The final decision papers released by the US ITC this Wednesday had upheld the duties ranging from 17.87 to 20.18 per cent against Canadian mills.

Meantime, the federal government has filed NAFTA appeal on behalf of the affected provinces.

Nova Scotia Energy Minister Michel Samson expressed disappointment and frustration over the US government’s decision to continue to impose unfair tariff on Port Hawkesbury Paper. He further noted that the NAFTA appeal is a lengthy process and could take two to three years. However, it has decided to go ahead with the appeal on account of the fact that the mill is a key employer and important exporter for the province. Furthermore, it firmly believes that the mill does not enjoy subsidy in any form whatsoever.

The mill development manager stated that operations at the mill will continue. The beaten up Canadian dollar currently allows them to operate the mill even with the high tariff rates. Meantime, the company is working on a new cost structure to keep the operations going even if the dollar’s value recover during the course of time.