TransCanada says it will file NAFTA claim over Keystone XL denial

TransCanada says it intends to file a claim under the North American Free Trade Agreement in response to the U.S.

See Full Article

government’s rejection of the proposed Keystone XL pipeline.

In a press release Wednesday afternoon, the corporation said it filed a notice of intent to initiate a claim under Chapter 11 of NAFTA on the basis that the U.S. administration’s denial of the $8-billion project was “arbitrary and unjustified.”

According to Global Affairs Canada’s website, Chapter 11 of NAFTA “establishes a framework of rules and disciplines that provides investors from NAFTA countries with a predictable, rules-based investment climate” and dispute settlement procedures.

TransCanada has also filed a lawsuit in the U.S. Federal Court in Texas, claiming that U.S. President Barack Obama’s decision to deny construction of the Keystone XL pipeline “exceeded his power under the U.S. constitution.” The Federal Court claim also said the administration’s rejection of the pipeline conflicted with Congress’ constitutional power to “regulate interstate and international commerce.”

The company’s legal actions challenge the basis of the U.S. government’s denial of the presidential border crossing permit required for the project to go forward. The press release points out that the U.S. State Department denied the pipeline as a “symbolic gesture” based on speculation about international perceptions on the administration’s leadership on climate change, rather than the merits of the project.

“The NAFTA claim asserts that TransCanada had every reason to expect its application would be granted as the application met the same criteria the U.S. State Department applied when approving applications to construct other similar cross-border pipelines,” read the press release.

TransCanada will also aim to recover more than US$15 billion in costs and damages that it says it suffered as a result of the U.S. government’s breach of its NAFTA obligations.

With files from the Canadian Press


Latest Economic News

  • Proposed AT&T-Time Warner deal raises antitrust concerns in Washington

    Economic CBC News
    AT&T Inc's agreement to acquire Time Warner Inc for $85 billion US drew skepticism from both Democrats and Republicans on Sunday, making it more likely that regulators will scrutinize the effort to create a new telecommunications and media giant. Source
  • Muskrat Falls workers moved out after protesters break-in

    Economic CTV News
    Around 700 workers have been moved out of the Muskrat Falls hydroelectric site in Labrador as protesters continue to occupy the grounds. Nalcor Energy, the Crown corporation behind the multibillion-dollar project, issued a statement Sunday saying the move was made due to safety concerns. Source
  • Protesters who refuse solid food take fight against Muskrat Falls to Ottawa

    Economic CTV News
    An Inuk artist protesting the Muskrat Falls hydroelectric project in Labrador says he's lost more than eight kilograms after ten days of consuming nothing but water but is prepared to die for his cause. Billy Gauthier says he ate his last meal -- salmon -- on Oct. Source
  • Belgium urged to break CETA trade deadlock by Monday night

    Economic CTV News
    BRUSSELS -- Sources say that if Belgium cannot break a deadlock over the European Union's landmark free deal with Canada by Monday night, EU leaders will consider cancelling a signing ceremony scheduled for later in the week. Source
  • Inuit to address world shipping group on Arctic trade

    Economic CTV News
    A delegation of Arctic aboriginals that includes Canadian Inuit will use its first appearance before the group that regulates global shipping to argue that it shouldn't be its last. "The voice of the Arctic has to be heard," said longtime Inuit leader Tagak Curley, one of five presenters from Canada, the United States and Russia. Source
  • Quibble over foreign-exchange charges is part of a bigger trend of class actions

    Economic CBC News
    Eric Finkel noticed something awry when he withdrew cash from an ATM while travelling in Cambodia in 2012 and early 2013. He knew Canadian and U.S. dollars were trading close to par, so he was surprised by the transaction noted on his account — the exchange rate didn't add up. Source
  • Banking firms preparing to leave U.K. ahead of 'Brexit'

    Economic CTV News
    LONDON -- The head of the British Bankers' Association has warned that financial firms are planning to start leaving London within weeks because of uncertainty about the U.K.'s exit from the European Union. Chief executive Anthony Browne said in an article published Sunday that banks fear EU politicians will erect trade barriers with Britain in a bid to undermine the City of London, currently Europe's pre-eminent financial district. Source
  • EU sets Belgium Monday deadline to back CETA, source says

    Economic CBC News
    The European Union has given Belgium's federal government until late on Monday to secure backing for an EU-Canada trade deal from the region of Wallonia or a planned summit to sign the pact will be cancelled, an EU source said on Sunday. Source
  • EU sets Belgium Monday deadline to back CETA

    Economic CBC News
    The European Union has given Belgium's federal government until late on Monday to secure backing for an EU-Canada trade deal from the region of Wallonia or a planned summit to sign the pact will be cancelled, an EU source said on Sunday. Source
  • 'They should fess up:' Customers demand Apple find cure for iPhone 'touch disease'

    Economic CBC News
    What's known as iPhone "touch disease" appears to be spreading and pressure is mounting for Apple to find a cure. However, the tech giant still refuses to talk about it. Touch disease is an affliction of Apple's iPhone 6 and 6 Plus models which hit stores in 2014. Source