Resolute’s Effort to Collect Confidential Info from Its Rival Rejected

SEATTLE (Scrap Monster): Nova Scotia regulators have rejected the attempt by Resolute Forest Products to obtain confidential business information from Port Hawkesbury Paper. The company had asked for evidence filed by its papermaking rival to support the mill’s application for discount power rates.

As per market sources, the evidence included financial projections for a period of five years, a comparison of various mills’ profits and a research report prepared by a major investment research company. Resolute had sought the information to bolster an arbitration claim against the Canadian government under the then existent North American Free Trade Agreement (NAFTA).

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In accordance with the claim filed by the company, the federal and provincial government subsidies were discriminated in favour of Port Hawkesbury. Furthermore, this resulted in several damages including the closing of Resolute’s Laurentide, Quebec mill in October 2014.

The Nova Scotia Utility and Review Board ruled that Resolute had no right to see commercially sensitive information filed by Port Hawkesbury Paper. Port Hawkesbury Paper argued that Resolute had no right to access commercially sensitive information filed in confidence to the regulators, as it was not at all a party to the power rate application.