The former North American Free Trade Agreement (NAFTA) contained a chapter on investment that allowed foreign investors to sue governments in international arbitration. The owner of Keystone XL TC Energy (previously TransCanada) used NAFTA to launch a US$15 billion lawsuit in 2016 after President Barack Obama cancelled the project.
At the time, some legal experts thought the company had a reasonable chance of winning. We will never know, because the case was dropped when President Donald Trump indicated he was willing to let the project proceed.
This time may be different if TC Energy chooses to proceed with a claim. NAFTA has been replaced by a new agreement the U.S.-Mexico-Canada Agreement (USMCA). Unlike NAFTA, USMCA does not permit Canadian investors to sue the U.S. government (or American investors to sue the Canadian government).
U.S. President Joe Biden, to the surprise of no one but Kenney, followed through on an election promise and cancelled a key permit for the pipeline on the first day of his administration. Now the premier is scrambling for a way to recoup some of Alberta’s losses, and he sees a trade agreement as offering some hope.
The former North American Free Trade Agreement (NAFTA) contained a chapter on investment that allowed foreign investors to sue governments in international arbitration. The owner of Keystone XL TC Energy (previously TransCanada) used NAFTA to launch a US$15 billion lawsuit in 2016 after President Barack Obama cancelled the project.
U.S. President Joe Biden, to the surprise of no one but Kenney, followed through on an election promise and cancelled a key permit for the pipeline on the first day of his administration. Now the premier is scrambling for a way to recoup some of Alberta’s losses, and he sees a trade agreement as offering some hope.
The former North American Free Trade Agreement (NAFTA) contained a chapter on investment that allowed foreign investors to sue governments in international arbitration. The owner of Keystone XL TC Energy (previously TransCanada) used NAFTA to launch a US$15 billion lawsuit in 2016 after President Barack Obama cancelled the project.