by The U-S Commerce Department has upheld a 20 per cent duty on the super-calendered paper Port Hawkesbury Paper exports south of the border.
The ruling could cost the company millions of dollars, if it’s upheld by the U.S. International Trade Commission.
That ruling will come on Dec. 4.
The Commerce Department launched an investigation into the matter after an unfair competition complaint from American paper mills.
In a preliminary ruling in July, the Commerce Department found that Port Hawkesbury Paper benefited from subsidies in the form of discounted power rates and a $124-million provincial aid package.
Both the mill and the province challenged the ruling, arguing that power rates that account for 70 per cent of the duty are not a government subsidy.
Port Hawkesbury Paper has been setting aside money to pay the duty, which could cost up to $50 million a year.
Mill Development Manager Marc Dube says the company’s legal team will review the decision in preparation for an appeal to the World Trade Organization.