[CTC] Canadian Pipeline Co Seeks $15 Billion from US over Keystone XL

[Arthur Stamoulis]

Politico Morning Trade

— Canadian pipeline operator TC Energy is seeking $15 billion in damages from the U.S. over the abandoned Keystone XL oil pipeline, saying the Biden administration unfairly discriminated against the project in violation of the U.S.-Mexico-Canada free trade pact.

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CANADIAN PIPELINE CO SEEKS $15B FROM US OVER KEYSTONE <https://go.politicoemail.com/?qs=ab92a9bd3a5008119b3140f7b99ab84f23e9723d72b206638f0f4d08eef2a11c2d9fd7b970a70d5018c80427acca01ea>: Canadian pipeline operator TC Energy is seeking $15 billion in damages from the Biden administration over the president’s decision to cancel its long-maligned Keystone XL pipeline project.

TC Energy Friday announced it would file a “legacy” NAFTA claim under the updated U.S.-Mexico-Canada free trade agreement, arguing the U.S. government must pay for discriminatory treatment toward the 1,200-mile pipeline, which proposed carrying crude from Hardisty, Alberta, to Steele City, Neb.

The claim comes under investor-state dispute settlement provisions in the original NAFTA that allow companies to sue governments for alleged discriminatory treatment. The USMCA will soon phase those out between the U.S. and Canada, but the updated deal signed last year allowed companies to use the legacy provisions for existing investments until July 2023.

The news comes less than a month after TC Energy formally announced an end  <https://go.politicoemail.com/?qs=ab92a9bd3a500811d8e0d627a58287597b321a18eb0a4515393e3e9d8b879e93eac79f686845aec5c26e8e88556ce137>to its bid to build Keystone XL, which was first canceled by the Obama administration in 2015 before being revived by former President Trump. The company said it made the move after consultations with the government of Alberta and following a “comprehensive review of its options.” The provincial government was a partner on the project, putting Alberta taxpayers on the hook for theC$1.3 billion <https://go.politicoemail.com/?qs=ab92a9bd3a50081124544d8e83b828d9f83dfb2cdb63e32b991fb78d1ac9510d3934a01db03ccaa3d1eddc95bac98e1a> the province invested in the pipeline.

The Office of the U.S. Trade Representative did not comment on the case.

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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