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WTO looking at NS aid for paper mill

Canada found itself lumped together with China and India as a country that the United States suspects of paying illegal subsidies that distort trade, with C$162 million ($163 million) of aid to a Nova Scotia paper mill under scrutiny.

October 24, 2012  By  John Tenpenny

According to Reuters, the United States, which is determined to bring China to justice at the World Trade Organization over what it claims are illegal subsidies, said Canada should withdraw payments to the Port Hawkesbury paper mill, which competes with U.S. producers.

The mill has received tax breaks, grants, energy cost reductions and timber subsidies that could be challenged under WTO rules, a U.S. official told the WTO subsidies committee.

A European Union official said the EU also was concerned about the subsidies and asked for more information.
A Canadian official told the meeting that Canada was already working with the provincial authorities to answer U.S. questions and had started a dialogue with the United States, which the EU was welcome to join.

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