MADAWASKA, Maine — In spite of the ongoing trade war between the United States and Canada, businesses along the northern Maine border showed optimism for the future of international trade during an April 10 networking event hosted by the town of Madawaska that featured members of the Maine International Trade Center, the Foreign-Trade Zone and Northern Maine Development Commission.
Maine International Trade Center President Wade Merritt said in an interview before the event that tariffs are a major issue and concern among the companies and businesses MITC works with throughout the state.
“Maine is in a unique position with all of this, with shared natural resources and shared energy,” Merritt said. “And of course you couldn’t have a better poster child for the shared community between the U.S. and Canada than Madawaska and Edmundston.”
He said the unpredictability of the situation has resulted in a moving target for many businesses, resulting in a chilling effect on whether people decide to make investments. He said many have told him that they’re waiting for the dust to settle before making any big decisions.”
Depending on what the future holds, he said tariffs will likely affect many of Aroostook County’s resource-based industries such as forestry and potato farming.
“I’d be hard pressed to say that there’s not going to be an effect on everybody in some way, depending on which way some of the tariffs come into effect,” he said.
Madawaska Town Manager David Daigle welcomed attendants and introduced speakers. He encouraged collaboration between businesses on both sides of the border and discussed some of the town’s recent economic development projects such as work to revitalize its Midtown Shopping Plaza on Main Street, which will include a new Fish River Rural Health facility which will be three times as large as its current building in Madawaska.
Daigle also emphasized the town’s status as one of the state’s four Foreign-Trade Zones (FTZ), which gives businesses that trade internationally benefits like decreased costs and a faster supply-chain pace.
According to the Maine Office of Business Development, the Madawaska zone also includes Fort Kent, Frenchville, Grand Isle, St. Agatha and Van Buren.
Scott Taylor, a national FTZ leader, spoke to attendants via Zoom about how this zone could help businesses in the area. He said that businesses in this area could get approved under the Department of Commerce in 30 days or less.
“Once that’s approved, that company is outside U.S. Customs territory with respect to those duties, so that you can bring in product from anywhere,” he said.
He said the FTZ is also a protection against future tariffs, adding that there may be more tariffs in the future.
The early morning event also featured speeches from three businesses along the border: ASU Workwear of Edmundston, RF Chamberland of St. Agatha and Autotronics of Madawaska.
Andre Michaud of ASU Workwear spoke about the company’s success internationally and hopes to expand in the future. Michaud said the company has been around since 1986, and specializes in protective workwear.
Daigle said he hopes to see the company continue its expansion, and that the town would utilize any financing services or options to help ASU open a new location in Madawaska.
RF Chamberland President Mark Chamberland gave attendees an overview of the scale and scope of the company’s operations. RF Chamberland currently has 90 employees and 70 trucks. They drive to all 48 states and into several Canadian provinces including Ontario and Nova Scotia.
Paul Daigle Sr., a consultant with Autotronics, also discussed the company’s long history in the region. Autotronics was started by Daigle’s grandfather in 1958, and is now in its fourth generation of ownership. The company focuses on automotive electronic repair, and has had contracts with several communities and organizations throughout New England, including a 14-year contract with the city of Boston.
He said that while the tariffs caused a Canadian company to pull out of a $4 million contract with the business, he believes the negative impact will be short-lived. He added that he is optimistic about the company’s long-term future.
“We are looking at expanding,” he said. “This tariff thing is a bump in the road as far as I’m concerned. I’m 100 percent sure it’ll resolve itself. I think it’s more scare tactics than anything else.”
David Daigle, who worked at Autotronics prior to becoming town manager in Madawaska, commended Daigle Sr. for his work at the company and said that he has remained resilient amid numerous challenges. He also encouraged any business owners in the room who are encountering issues with international trade to reach out to U.S. Sen. Susan Collins’ office via State Office Representative Trisha House, who was also in attendance.
Collins, in a recent statement on the senate floor, brought up the Twin Rivers paper mill in Madawaska as an example of the state’s economic relationship with Canada.
“There literally is a pipeline through which the pulp travels between these two sister mills,” Collins said on April 2. “A tariff placed on this pulp would jeopardize the financial well-being of this vital paper mill, which employs more than 500 people in rural northern Maine.”
Merritt, in his presentation, encouraged businesses on both sides of the border to continue their positive relationship.
“This is a special place because of its bi-national nature,” he said. “Don’t lose that sense of community. We heard a lot from the Fredericton, St. John and Moncton folks earlier in the week that ‘We’re still here. We’re still your partners, and we’re still your friends. And we still want to be. Don’t let that change.'”
