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ARTICLE · 12 JANUARY 2016

TransCanada To Sue US Under NAFTA Over Keystone XL Decision

Siskinds LLP
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Calgary-based pipeline company TransCanada has filed a Notice of Intent to Arbitrate ("Notice") under article 11 of the North American Free Trade Agreement ("NAFTA").

CanadaEnergy and Natural Resources
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Calgary-based pipeline company TransCanada has filed a Notice of Intent to Arbitrate ("Notice") under article 11 of the North American Free Trade Agreement ("NAFTA").  It issued the Notice in response to US president Barak Obama's November 6, 2015 refusal to grant the necessary approval to complete construction of Keystone XL, a proposed trans-national pipeline that would deliver crude oil from Canada to the US.

As with other international trade and investment treaties — including the proposed Trans-pacific Partnership (TPP) and the Comprehensive Economic Trade and Agreement (CETA), which was recently signed between Canada and the European Union — NAFTA contains a mechanism for investor state dispute settlement. This provides a means through which an investor from one state party can sue a state party in which it has an investment for breach of certain standards relating to the host country's treatment of the investor and its investment. Host states do not

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