NL

$500K legal bill, and counting, for province to fight newsprint tariffs

Fighting American tariffs on newsprint has cost Newfoundland and Labrador taxpayers a hefty amount in legal fees.

Premier Dwight Ball says legal expertise had to be hired in the United States

Dwight Ball said Tuesday the province has no choice but to fight to preserve an industry that is worth $300 million a year. (CBC)

Fighting American tariffs on newsprint has cost the Newfoundland and Labrador government $500,000 and there's no telling how high the bill could go.

"It's quite a bit of money," Premier Dwight Ball told reporters outside the legislature on Tuesday, saying the province has no choice.

"We have to push back, we have to fight ... it's the only choice that we have."

The paper mill in Corner Brook, on the province's west coast, has been hit by two tariffs, and stands to lose about $30 million a year.

Ball said most of the legal bill is for a key period between August and December of 2017, fighting an anti-dumping penalty of 22 per cent.

"Not much of this expertise is available in the province, so we had to go out and seek Canadian firms. We also had to engage firms in the Washington area as well, and they've travelled to our province from time to time," Ball said.

"It's not easy to get through the maze in Washington."

an exterior photo of the Corner Brook newsprint mill.
American tariffs will cost the Corner Brook Pulp and Paper mill $30 million a year, according to the province. (Colleen Connors/CBC)

The U.S. Department of Commerce imposed the anti-dumping tariff in March, despite the province's objections.

But Ball says he can't give up on an industry that is worth $300 million a year to the province.

"We all know where this is going if we don't push back."

He said the legal battle could continue for several years, and include an appeal to the World Trade Organization, but he is confident the tariffs will be refunded.

"We're not prepared to sit idly by and watch jobs leave the province just because someone decided that they want to put out a tweet at 4 or 5 a.m."