According to legal papers filed Friday, Calgary-based TransCanada made the formal request for arbitration from the International Centre for Settlement of Investment disputes, says CBC Canada.
TransCanada originally filed two lawsuits in January this year. One lawsuit, filed in federal district court in Houston, Texas, alleged President Obama’s rejection of the keystone XL pipeline was unconstitutional. The second lawsuit was filed with the State Department, with TransCanada seeking $15 billion in costs and damages under NAFTA, specifically, involving four articles of that trade agreement between Mexico, Canada, and the U.S.
.@TransCanada to take on U.S. government over #KeystoneXL rejection: pic.twitter.com/wROX5m3Qse
— 660 NEWS Calgary (@660NEWS) June 26, 2016
Friday’s request also alludes to the fact that talks in April with the U.S. to settle the dispute had failed, with the parties unable to come to an agreement. TransCanada’s notice is similar to the original lawsuit filed in January, alleging the U.S. government had concluded “numerous times” that the pipeline would not have a big impact on greenhouse gas emissions, reports CP24.com.
TransCanada is saying the rejection of the pipeline was just Obama’s way of appearing to be strong on climate change and was a political move, making it part of his legacy. The company also alleges that as a member of NAFTA, the U.S. failed to protect Canadian investors and failed to ensure the company was treated properly in accordance with international law.
The formal request states: “At the time Keystone submitted its applications, the express policy of the United States was to expedite the development of energy production and transmission projects including oil pipelines. That remains the official policy of the United States even today, despite the denials of Keystone’s applications.”
NAFTA’s arbitration provisions allow companies to challenge governments before an international panel. But NAFTA has been a target of anti-free trade sentiment in the U.S. recently. A June 29 date has been set for a formal meeting in Ottawa of NAFTA members, Canada, the United States, and Mexico.
The formal meeting, which has nothing to do with the lawsuits, was supposed to be held earlier this year with Canada being the host. But that meeting failed to materialize because of the tension between Prime Minister Stephen Harper and President Obama over the Keystone XL pipeline.
