Maine delegation asks U.S. to look into alleged subsidies for Canadian cement plant
The Maine congressional delegation has sent a letter to acting U.S. Trade Representative Maria Pagan regarding reports of unfair subsidies that may have been provided to a cement plant soon to come online in Quebec and is expected to export to the United States, potentially putting the Dragon Products Company in Thomaston at risk.
U.S. Sens. Susan Collins, R-Maine, and Angus King, I-Maine, and U.S. Reps. Chellie Pingree, D-Maine, and Bruce Poliquin, R-Maine, urged Pagan to ensure that there are no violations of international trade rules that could harm Maine and Maine businesses.
According to their joint letter, the delegation’s concern is based on news reports that loans and equities, valued at hundreds of millions of dollars, are flowing to the McInnis Cement Company’s newly established $1.1 billion plant in Port-Daniel-Gascons, Quebec.
“We understand that the plant is expected to become operational in the next three to six months and that a significant portion of the product from the McInnis Cement plant will be exported to the United States,” the delegation wrote in their letter to Pagan. “Moreover, we understand that exports from the McInnis plant may be targeted specifically for distribution throughout the Northeast, which would cause a much more significant effect on this regional market.”
The congressional delegation added in their joint press release: “Not only could this targeted distribution have distorting effects on regional markets, but Maine’s cement and concrete workers — like those employed at Dragon Products Company in Thomaston — would struggle to compete against unfairly subsidized product from Canada.”
In their letter to Pagan, the delegation urges the USTR “to ensure the provincial government of Quebec is adhering to Canada’s obligations under the World Trade Organization regarding this matter in order to prevent harm to Dragon Cement and its workers from potentially illegal subsidies. We specifically request your continued attention to resolving this critical issue.”
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