Rep. Michaud Requests Info on Canadian Paper Financial Aid

U.S. Trade Representative Ron Kirk should review the details of the financial package offered by the provincial government of Nova Scotia to a paper mill in Port Hawkesbury for possible trade agreement violations, said Rep. Mike Michaud (D-Maine) in a Sept. 26 letter to the USTR. Michaud asked Kirk to obtain complete information about the province’s rescue package and to determine whether it is consistent with Canada’s NAFTA and WTO commitments.

"Nova Scotia offered Pacific West Commercial a $125 million aid package as an incentive for the company to purchase the former NewPage Port Hawkesbury paper mill," the letter said. "The package reportedly includes millions of dollars in forgivable loans, more than a million dollars for worker training, reduced energy costs, funds to maintain the supply of wood fiber, land purchases, among other forms of assistance. Maine’s paper industry believes the size and scope of Nova Scotia’s assistance is likely to lead to a decreased market share for the state’s mills." If violations are found, "I urge USTR to raise the issue with the Canadian government as quickly as possible in all available forums," said Michaud. "It is my hope that any violations by Canada of its trade agreement obligations resulting from the Port Hawkesbury deal can be worked out expeditiously and without having to engage through protracted, formal procedures that require Maine’s mills to first demonstrate injury before they can be initiated."