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Business and Economy

Maine Legislators Want Probe of Canadian Mill Subsidies

MADISON, Maine - A group of Maine lawmakers is asking the federal government to address Canadian paper mill subsidies they say place U.S. mills on unequal footing with their northern counterparts.

Republican Sen. Susan Collins and Independent Sen. Angus King are joining Republican Rep. Bruce Poliquin to ask U.S. Secretary of Commerce Penny Pritzker to investigate subsidies provided to the Port Hawkesbury Paper mill in Nova Scotia by the province's government.

Madison Paper Industries in Madison, Maine, recently cited the subsidies as a reason why it is temporarily shutting down production and laying off employees.

The lawmakers' letter says the subsidies reportedly total more than $125 million and have put U.S. producers of supercalendered paper at a significant competitive disadvantage. Supercalendered paper is a smooth, glossy paper often used for magazines and catalogs.