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<BODY lang=EN-US style="MARGIN: 4px 4px 1px; FONT: 10pt Tahoma" vLink=purple link=blue>Wrought with symbolism!<BR><BR>>>> "Stuart Trew" <strew@canadians.org> 3/26/2010 10:44 AM >>><BR>
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<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><B><SPAN style="FONT-SIZE: 24pt; FONT-FAMILY: 'Times New Roman','serif'">Bridge seeks $3.5B under NAFTA claim<o:p></o:p></SPAN></B></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"> <o:p></o:p></SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><B><SPAN style="FONT-SIZE: 18pt; FONT-FAMILY: 'Times New Roman','serif'">Canada violated pact, Moroun says<o:p></o:p></SPAN></B></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"> <o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">By Dave Battagello, The Windsor StarMarch 26, 2010<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"> <o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"> <o:p></o:p></SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><STRONG>Ambassador Bridge owner Matty Moroun is seeking at least US$3.5 billion in damages from the government of Canada over its plans to build a downriver border crossing.</STRONG></SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">The move comes on the heels of a lawsuit the billionaire transportation mogul filed in U.S. District Court in Washington against the Canadian and U.S. governments claiming interference with his bid to build a twin span.</SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">Moroun's latest claim says the Canadian government has violated the North American Free Trade Agreement with its plan to construct a $1.6-billion Windsor-Essex border parkway that links Highway 401 to the foot of proposed downriver government-backed bridge.</SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">The documents indicate Canada stands to be the greatest beneficiary under the Detroit River International Crossing plan.</SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">The claim says the project will be underwritten by the Canadian government and likely other private Canadian business, which discriminate against American investors, largely Moroun and his bridge company.</SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">Moroun has indicated in legal documents he has already spent US$250 million on his proposal to build a twin span.</SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">"Canada has arbitrarily undermined the claimant's investments by steering away traffic," says the claim, filed under NAFTA Chapter 11.</SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">The actions of the Canadian government have breached obligations under NAFTA which must treat the bridge company no less favourably than Canadian or third-country investors, the claim says.<o:p></o:p></SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">The claim also alleges that Canada has reneged on a commitment to invest in roads leading to the Ambassador Bridge. The parkway will stop three kilometres short and funnel traffic west to the new DRIC bridge.</SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">It is thanks to NAFTA -- signed in 1994 -- and previous Canada-U.S. free trade agreements that Moroun's business at the Ambassador Bridge and toll revenues exploded.</SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">At its peak in 1999, the bridge was handling 12,000 trucks per day, but traffic has dropped to about 7,000 following the Sept. 11, 2001 terrorist attacks, border security crackdowns and the economic downturn.</SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">The bridge generates about $60 million per year in toll revenues and millions more in duty free goods and gas sales.</SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">Moroun's NAFTA claim includes a request for arbitration. It was filed in New York with the United Nations Commission on International Trade Law. Chapter 11 calls for Canada to respond within 90 days, followed by a hearing before a three-member tribunal.</SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">Under the arbitration process, each side selects one member and the International Center for the Settlement of Investment Disputes in New York appoints a third.</SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><STRONG>Recent cases filed under NAFTA's Chapter 11 rules include AbitibiBowater Inc.'s $500-million claim against the government of Newfoundland and Labrador for its bid to expropriate the company's main assets in the province.</STRONG></SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">Moroun's NAFTA claim also alleged that the City of Windsor has intentionally hindered the ability of trucks and other vehicles to reach the bridge by granting numerous curb cuts to business along Huron Church Road and installing 17 stoplights between Highway 401 and the bridge.</SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">Moroun is requesting a finding that Canada has breached its obligations under NAFTA and should be directed to pay in excess of $3.5 billion, as well as legal fees and interest on whatever is awarded. He has also requested the award be paid in U.S. funds with no deductions in taxes.</SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">"The claim speaks for itself," said Phil Frame, spokesman for the bridge company.<o:p></o:p></SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">A Transport Canada spokesman declined comment Thursday.</SPAN></P>
<P class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'"><o:p></o:p></SPAN> </P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman','serif'">© Copyright (c) The Windsor Star<o:p></o:p></SPAN></P>
<P class=MsoNormal><o:p> </o:p></P>
<P class=MsoNormal><o:p> </o:p></P>
<P class=MsoNormal><B>Stuart Trew<o:p></o:p></B></P>
<P class=MsoNormal>Trade Campaigner<o:p></o:p></P>
<P class=MsoNormal>The Council of Canadians<o:p></o:p></P>
<P class=MsoNormal>Tel: 416.979.0451<o:p></o:p></P>
<P class=MsoNormal>Fax: 416.979.8972<o:p></o:p></P>
<P class=MsoNormal>On Twitter @StuJT or @CETAWatch<o:p></o:p></P>
<P class=MsoNormal>Visit our website: www.canadians.org/trade<o:p></o:p></P>
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