Resolute Forest has added its voice to Nova Scotia’s complaints against a U.S. duty imposed on a certain type of Canadian-made glossy paper products.
The Montreal-based company says it believes the U.S. Commerce Department failed to consider all the relevant factors and incorrectly applied the rules when it calculated the duty on Resolute.
The duties were imposed after U.S. producers complained that their Canadian rivals were getting government subsidies that provided an unfair advantage under international trade agreements.
The Commerce Department announced on Wednesday that the duties on imports of Canadian supercalendared paper would be set at 17.87, 18.85 or 20.18 per cent — depending on the producer.
Resolute said Friday the 17.87 per cent levy slapped on its products — up from a preliminary rate of 2.04 per cent — is too high because the U.S. didn’t attempt to quantify the real financial impact of two purported subsidies but relied on findings from an unrelated 1997 report on magnesium imports.
On Thursday, Nova Scotia cabinet minister Andrew Younger said he hoped the federal government will launch a formal challenge against the 20.18 per cent duty levied on Port Hawkesbury Paper, which has said it would appeal the tariff.