Description: Seeks damages under NAFTA stemming from the United States' disapproval of and delay in considering the Keystone XL Pipeline.
Notice of Intent to Submit a Claim to Arbitration Under Chapter 11 of the North American Free Trade Agreement, TransCanada Corp. v. Government of the United States of America
Filing Date Type File Action Taken Summary 01/06/2016 Notice of Intent to Sue Download Notice of intent to submit a claim to arbitration filed. TransCanada Filed Notice of $15 Billion NAFTA Claim. Canadian TransCanada affiliates filed a notice of intent to submit a claim to arbitration pursuant to the North American Free Trade Agreement (NAFTA). They said they would seek damages of more than $15 billion. The notice asserted that environmental activists had succeeded in turning opposition to the Keystone XL Pipeline into a “litmus test” for politicians, and that the delay in considering the presidential permit and the ultimate denial of the permit were “politically-driven, directly contrary to the findings of the [Obama] Administration’s own studies, and not based on the merits of Keystone’s application.” The notice cited core investment protections that the United States government committed to provide under NAFTA, including national treatment (Article 1102), most-favored-nation treatment (Article 1103), treatment in accordance with international law (Article 1105), and protection against uncompensated expropriations (Article 1110). The notice asserted that the Obama administration’s actions breached its obligations to provide these protections.
TransCanada Corp. v. United States of America
Filing Date Type File Action Taken Summary 06/24/2016 Not Available Download Request for arbitration submitted. TransCanada Filed Arbitration Request Under NAFTA, Seeking More Than $15 Billion for Keystone Permit Denial. TransCanada Corporation and TransCanada PipeLines Limited submitted a formal request for arbitration seeking damages arising from the United States government’s denial of a presidential permit for the Keystone XL Pipeline. The companies asserted that the U.S. had breached its obligations under the North American Free Trade Agreement (NAFTA), including under Articles 1102 (National Treatment), 1103 (Most-Favored Nation Treatment), 1105 (Minimum Standard of Treatment), and 1110 (Expropriation and Compensation). The two Canadian companies submitted claims for damages of more than $15 billion on their own behalf as well as on behalf of U.S. companies owned or controlled by the Canadian companies. They sought to arbitrate the dispute before the International Centre for Settlement of Investment Disputes. The companies asserted that the U.S. had unjustifiably delayed the decision on the pipeline based on “arbitrary and contrived” excuses; that the unjustified denial of the permit was based not on the merits of the application but on “how the international community might react to an approval in light of [the] erroneous perception that the pipeline would result in higher GHG emissions”; and that the U.S. had unjustifiably discriminated against the Keystone XL Pipeline, having previously approved pipeline applications from other investors.