The World Trade Organization has ruled largely in favour of Canada in a dispute with the United States over duties on glossy paper.
The WTO says it found the U.S. Department of Commerce acted inconsistently with trade rules in its justification for imposing countervailing duties on supercalendered paper, which is mainly used in magazines, catalogues, corporate brochures and advertising inserts.
Canada had asked in 2016 that the WTO look into the duties, and how the U.S. went about investigating the issue.
Last year, a NAFTA review panel also ruled in Canada’s favour with a unanimous decision to order the U.S. Department of Commerce to reconsider its duties against Canadian mills that produce glossy paper.
The U.S. imposed the duties in 2015, including a 20.18 per cent duty on Nova Scotia’s Port Hawkesbury Paper, a 17.87 per cent duty against Montreal-based Resolute Forest Products, and a duty of 18.85 per cent on the J.D. Irving mill in New Brunswick and Catalyst Paper of British Columbia.
The U.S. had claimed Canadian producers had received unfair subsidies, including cheap government-supplied electricity.
The Canadian Press