HALIFAX: A recent agreement could mean more money for the local paper mill.
On March 20, American paper company Verso Corp. made a filing to the United States Securities and Exchange Commission stating the company entered into an agreement with Port Hawkesbury Paper Limited Partnership and Irving Paper Limited.
The duty order taxed glossy paper imported by the two Canadian companies at around 20 per cent. If the Department of Commerce decides to go along with the request, Port Hawkesbury Paper would receive duties collected since the CVD order was established.
“Within three days of the signing of this agreement, [Verso] agrees to file with [the U.S. Department of Commerce] a request for a ‘no interest’ changed circumstances review of the countervailing duties [CVD] order on supercalendered paper from Canada… wherein [Verso] will express a lack of interest in the CVD order dating back to August 3, 2015, and specifically request that the effective date of the notice of revocation of the CVD order shall be August 3, 2015,” stated the filing.
Marc Dube, development manager for Port Hawkesbury Paper could not be reached as of press time. Dube previously said the duties cost the company around $50 million.
When asked for comment, Nova Scotia Trade Minister Geoff MacLellan said he didn’t want to say too much on the subject other than to say the potential agreement is in no small part due to the work of Dube.
“They’ve approached this with a strong rationale for their position, they followed all of the elements of the process and a final favourable outcome is good for Port Hawkesbury, it’s good for the region, it’s good for the province, and really it’s due to Marc and his team’s leadership on this.”
MacLellan said he understands there is an eight week process to go from preliminary filing to final report.
“We’re certainly hoping for positive news and I think Port Hawkesbury Paper has positioned themselves to be positive,” said MacLellan.