Wednesday, December 26, 2012

US Senators Crack Down On Canadian Trade Practices

http://klobuchar.senate.gov/newsreleases_detail.cfm?id=338166&
U.S. Senators Amy Klobuchar (D-MN) and Susan Collins (R-ME) today urged the administration to crack down on unfair Canadian trade practices in the paper market. In a letter to U.S. Trade Representative Ron Kirk, Klobuchar and Collins, along with a bipartisan group of eight other senators, called on Ambassador Kirk to examine potentially illegal subsidies being provided by the provincial government of Nova Scotia to the Port Hawkesbury Paper (PHP) mill in Nova Scotia. A flood of illegally subsidized paper into the U.S. market would hurt Minnesota’s forest industry, which employs 30,000 people and contributes billions of dollars to the state economy. “Minnesota’s paper industry is a vital part of our state’s economy; supporting numerous jobs and communities across the state,” Klobuchar said.“American firms should not be asked to continue to compete on the unlevel playing created by unfair Canadian subsidies.” “Our state’s paper industry has a long history and remains a major economic engine in rural Maine, directly supporting thousands of good jobs,”said Senator Collins.  “At a time when our mills are already struggling to retain jobs, we must protect against unfair Canadian subsidies before lasting damage is done to the U.S. paper industry.” The Port Hawkesbury Paper mill was closed last year due to its previous owners filing bankruptcy. However, current reports indicate that the plant has reopened with assistance from the Canadian provincial government, including grants, loans, and reductions on utility rates and property taxes.