By: The Working Forest Staff
A paper mill in Port Hawkesbury, N.S., is celebrating a decision by the United States Department of Commerce to end countervailing duties that were imposed in 2015 on its glossy paper.
According to a report by the CBC, some American companies had complained that several Canadian mills, including Port Hawkesbury Paper, were receiving unfair subsidies.
The tariff against Port Hawkesbury Paper was 20.18 percent.
Mill officials won’t say exactly how much the tariffs cost the company over the past 36 months, but co-manager Mike Hartery said the impact was significant.
“It had strained our business significantly, to the point where there would be a concern as to whether it would be an ongoing operation in the area,” said Hartery.
The decision to end the duties came after the last remaining U.S. producer of glossy paper involved in the complaint, Verso Corp., withdrew its objections.
Verso reached a settlement with Port Hawkesbury Paper and J.D. Irving of New Brunswick this spring, which will see the two Canadian companies pay Verso up to $42 million.
See full report here.