A Canadian mill that competes with Madison Paper Industries in Maine is now under investigation by the U.S. Department of Commerce for subsidies it received.
The Portland Press Herald reported that the federal agency has opened an investigation into $125 million in subsidies Nova Scotia’s provincial government provided to help reopen Port Hawkesbury Paper in 2012. Madison mill officials have complained that the subsidies have created unfair competition in the supercalendered paper market, and that the unfair competition led the Madison mill to issue temporary layoffs earlier this year.
The investigation — which will seek to determine if the Canadian mill was unfairly subsidized and whether a duty should be imposed on paper it produces — was announced by U.S. Sens. Angus King and Susan Collins and U.S. Rep. Bruce Poliquin on Friday.
Source: Portland Press Herald
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