[LINK] "Resolute seeks more than $70-million in damages over revival of Nova Scotia paper mill"

[rfmcdonald]

The Globe and Mail carries this Canadian Press report about an unusual complaint brought against Nova Scotia under NAFTA rules.

Resolute Forest Products Inc. is seeking damages of more than $70-million under the North American Free Trade Agreement, citing losses it blames on the government-aided revival of an idled paper mill in Nova Scotia.

The Montreal-based company said in a statement late Wednesday that it has filed a notice of arbitration under NAFTA, saying the closure of its Laurentide mill in Quebec was a result of competition from the paper mill in Port Hawkesbury, N.S.

The mill, idled for about a year, was restarted with aid of more than $124-million in government assistance in 2012.

“Resolute contends those measures discriminated in favour of Port Hawkesbury and resulted, among other damages, in the closing of Resolute’s Laurentide mill in October 2014, depriving Resolute of its investment in that mill, and the value of other investments, in violation of the company’s rights under NAFTA.”

The company said it is seeking damages for direct losses of some $70-million, as well as unspecified consequential damages “and additional costs and relief deemed just and appropriate by an arbitral tribunal.”