WASHINGTON, D.C. – Today, U.S. Senator Angus King (I-Maine) testified before the U.S. International Trade Commission (ITC) in support of Maine’s supercalendered paper industry and outlined the damaging impact that unfair Canadian trade subsidies have had on Maine businesses such as Madison Paper.

“The mill workers in Madison are talented, dedicated, open to challenges, and innovative; in short, they are part of a proud paper-making community and tradition in Maine. The workforce at Madison is also justifiably frustrated with the conditions under which they’re effectively being asked to compete for business. When the Government of Nova Scotia rescued the Port Hawkesbury Paper mill from closure in October 2012, it brought a large, previously unprofitable supercalendered paper mill back onto the market that would not otherwise be there if not for the government’s substantial assistance,” said Senator King in his testimony. “Even in a rapidly changing market environment, Madison’s workers – any of Maine’s paper mill workers, in fact - can compete and win. But they require a level playing field and the strong enforcement of fair trade practices. Your Commission’s hard work and final decision confirming injury by reason of imports will be an important step toward providing the relief that Madison Paper and other domestic supercalendered paper producers deserve. On behalf of all Maine paper mill workers, I appreciate your attention to this matter.” 

Today’s hearing, which focused on the countervailing duty case regarding supercalandered paper from Canada, will help the ITC make a final determination as to whether unfair Canadian subsidies have materially injured or threatened to injure the U.S. supercalendered paper industry. The subsidies in question include those provided to the Port Hawkesbury Paper mill in Nova Scotia. Senator King, along with Senator Susan Collins (R-Maine) and Congressman Bruce Poliquin (R-Maine-2), sent a letter to U.S. Secretary of Commerce Penny Pritzker in January urging her to address and put a stop to these unfair Canadian trade practices.

Early this month, King visited the Madison Paper mill to express his support for the workforce and pledge to do all he can to fight for and protect Maine jobs affected by unfair Canadian trade practices. During the visit, he met with employees and spoke with management and local officials. That same day, Senator King also visited Catalyst’s Rumford mill and similarly met with employees, management, and local officials. As part of the ongoing trade investigation, Senators King and Collins, and Congressman Poliquin, have repeatedly urged the Department of Commerce to investigate all four Canadian supercalendered paper producers: Irving Paper Ltd, Catalyst Paper, Port Hawkesbury Paper, and Resolute Forest Products. The Commerce Department’s decision to limit the investigation to Port Hawkesbury Paper and Resolute Forest Products is unfair to Irving and Catalyst – two businesses that directly employ over 1,000 people Maine – because they are prevented from clarifying that they did not receive the same level of subsidies as Port Hawkesbury and Resolute, if they received them at all. As a result, Irving and Catalyst will be punished for the subsidies that two other Canadian paper competitors received – an unfair and arbitrary outcome. In his testimony today, Senator King expressed disappointment that these two companies have not received a full investigation in order to rectify this unfair situation:

“I believe that the strong enforcement of fair trade practices also means ensuring that antidumping and countervailing investigations are conducted in a thorough, fair and fact-based manner,” said Senator King. “I was disappointed that the Department of Commerce chose, as part of this investigation, to investigate only two of the four Canadian supercalendered paper producers – a decision which will likely negatively and unfairly impact two important businesses with significant operations in Maine.

Senator Susan Collins and Representative Bruce Poliquin also testified before the ITC today. Senator King’s full testimony, as prepared for delivery, is available below:

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HEARING TESTIMONY OF SENATOR ANGUS S. KING, JR BEFORE THE U.S. INTERNATIONAL TRADE COMMISSION

Supercalendered Paper from Canada, 701-TA-530 (Final)

October 22, 2015

Madam Chairman and Members of the Commission, thank you for allowing me to speak today in support of the U.S. supercalendered paper industry as part of the ongoing investigation into imports of supercalendered paper from Canada.

I appreciate the opportunity to help explain this industry’s importance to a key company and community in Maine, both of which – I believe – have suffered economic injury as a result of the Government of Canada’s and provincial governments’ decisions to confer unfair and illegal subsidies.

I consider this proceeding to be extremely important – not only for the parties here, but because protections are hollow without enforcement. The outcome of this case is important to Madison Paper Industries, in Madison, ME, a company that has been operating as a cornerstone employer in rural Somerset County since 1978. When I visited the Madison paper mill earlier this month, I had the opportunity to learn more about the mill’s operations as well as speak with some of the 220 hard-working men and women who depend on the mill as their primary employer. The mill workers in Madison are talented, dedicated, open to challenges, and innovative; in short, they are part of a proud paper-making community and tradition in Maine, which – as our state’s largest industry – employs over 17,000 individuals in direct or ancillary professions and contributes more than $113 million to the tax base each year.

The workforce at Madison is also justifiably frustrated with the conditions under which they’re effectively being asked to compete for business. When the Government of Nova Scotia rescued the Port Hawkesbury Paper mill from closure in October 2012, it brought a large, previously unprofitable supercalendered paper mill back onto the market that would not otherwise be there if not for the government’s substantial assistance.

The Department of Commerce found, in its final subsidy determination, that nine programs administered by the Government of Nova Scotia confer countervailable subsidies to the Port Hawkesbury mill. Your preliminary report notes that prices for supercalendered paper declined from 2012 through 2014. The October 2012 re-opening of the Port Hawkesbury mill – which was only made possible by illegal and unfair subsidies provided by the Government of Nova Scotia to the mill’s new owners – appears to be directly linked to downward price pressures on supercalendered paper.

Even in a rapidly changing market environment, Madison’s workers – any of Maine’s paper mill workers, in fact – can compete and win. But they require a level playing field and the strong enforcement of fair trade practices. On that note, I believe that the strong enforcement of fair trade practices also means ensuring that antidumping and countervailing investigations are conducted in a thorough, fair and fact-based manner. I was disappointed that the Department of Commerce chose, as part of this investigation, to investigate only two of the four Canadian supercalendered paper producers – a decision which will likely negatively and unfairly impact two important businesses with significant operations in Maine.

Nonetheless, your Commission’s hard work and final decision confirming injury by reason of imports will be an important step toward providing the relief that Madison Paper and other domestic supercalendered paper producers deserve. On behalf of all Maine paper mill workers, I appreciate your attention to this matter. 

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