Liberals say nothing wrong in awarding a loan that could break WTO rules NAHLAH AYED
OTTAWA (CP) - The Canadian Alliance says the Liberals are arrogant for awarding a Quebec company a loan they knew could contravene world trade rules. The Liberals denied Friday allegations that they did anything wrong when cabinet gave $80 million to a Quebec company even though one federal minister warned the action could prompt a complaint at the World Trade Organization.
A memo to cabinet from Revenue Minister Martin Cauchon points out that the loan "would not comply with World Trade Organization rules."
"These grants could be challenged by our trade partners, including the United States."
Cauchon added that the risk of such a complaint is moderate, because the capacity of the proposed plant would be "relatively insignificant in comparison to U.S. production."
The loan makes it possible for workers to buy and run a mothballed paper mill in the Gaspe region. The announcement, which Cauchon publicly lauded, came earlier this month.
===== Kevin Dean Buffalo, NY ICQ: 8616001 http://www.yaysoft.com
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