British Columbia

B.C.'s Catalyst Paper hit with costly duties in trade dispute

B.C.'s International Trade Minister Teresa Wat says she's disappointed with a decision by U.S. officials to impose costly duties on a paper product produced by four Canadian paper mills, including B.C.'s Catalyst Paper.

U.S. Department of Commerce says imports of supercalendered paper have been subsidized

Catalyst Paper has been hit with a costly duty by the U.S. for its magazine quality paper. (Catalyst Paper Corp.)

B.C.'s International Trade Minister Teresa Wat says she's disappointed with a decision by U.S. officials to impose costly duties on a paper product produced by four Canadian paper mills, including B.C.'s Catalyst Paper.

The U.S. Department of Commerce says imports of supercalendered paper have been subsidized so Canadian mills now face a duty of 18.85 per cent, up more than seven per cent.

The special paper is used in products like magazines, catalogues, corporate brochures and advertising inserts.

Wat says her ministry is confident that a full investigation of Catalyst will confirm the company has not received government subsidies.

The CEO of Catalyst Paper, Joe Nemeth, said he was disappointed with the U.S. decision.

"We will seek an expedited review of our case by the U.S. Department of Commerce as soon as possible," he said.

The DOC imposed the duties on imports of supercalendered paper from four Canadian paper producers — Port Hawkesbury Paper, Resolute Forest Products, Irving Paper and Catalyst Paper — on July 27.

Since then Catalyst has paid $1.3 million in duties to the U.S. Treasury, said Nemeth.

The dispute is not the only one involving Canadian wood products heading to the U.S.

The 2006 softwood lumber agreement expired on Monday and a B.C. official said Tuesday the Americans have ignored Canada's offers to renew or renegotiate the trade agreement.

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.

now