B.C.'s Catalyst Paper hit with costly duties in trade dispute
U.S. Department of Commerce says imports of supercalendered paper have been subsidized
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.