TransCanada the underdog in NAFTA gambit over Keystone XL rejection
Legal observers say that while TransCanada Corp. appears to have a strong case under the North American free-trade agreement to challenge Washington’s rejection of its Keystone XL pipeline, the Calgary-based company has just embarked on a long-haul process in which it remains an underdog.
The United States has never lost a case launched by a Canadian or Mexican company in the 22 years since the dawn of NAFTA, which allows foreign investors from the treaty’s signatories to sue governments for decisions they claim discriminate against them. More than a dozen Canadian companies have tried over the years to challenge the United States under the trade deal.
An Obama administration spokesman said on Thursday that the government had acted lawfully and that its decision was consistent with U.S. obligations under NAFTA.
One reason that may partly account for Washington’s undefeated record in NAFTA proceedings is this process for choosing arbitrators, argued Gus Van Harten, an associate professor at York University’s Osgoodge Hall Law School in Toronto. If the two sides cannot agree on a third arbitrator, the World Bank – whose president is effectively appointed by the United States – steps in and appoints one, he said.
TransCanada the underdog in NAFTA gambit over Keystone XL rejection - The Globe and Mail
Legal observers say that while TransCanada Corp. appears to have a strong case under the North American free-trade agreement to challenge Washington’s rejection of its Keystone XL pipeline, the Calgary-based company has just embarked on a long-haul process in which it remains an underdog.
The United States has never lost a case launched by a Canadian or Mexican company in the 22 years since the dawn of NAFTA, which allows foreign investors from the treaty’s signatories to sue governments for decisions they claim discriminate against them. More than a dozen Canadian companies have tried over the years to challenge the United States under the trade deal.
An Obama administration spokesman said on Thursday that the government had acted lawfully and that its decision was consistent with U.S. obligations under NAFTA.
One reason that may partly account for Washington’s undefeated record in NAFTA proceedings is this process for choosing arbitrators, argued Gus Van Harten, an associate professor at York University’s Osgoodge Hall Law School in Toronto. If the two sides cannot agree on a third arbitrator, the World Bank – whose president is effectively appointed by the United States – steps in and appoints one, he said.
TransCanada the underdog in NAFTA gambit over Keystone XL rejection - The Globe and Mail