DeLauro Statement on the TransCanada Claim on Keystone XL under NAFTA
WASHINGTON, DC (January 7, 2016) — Congresswoman Rosa DeLauro (CT-03) today released the following statement regarding news that TransCanada Corp. plans to file a legal challenge against the United States, claiming that President Obama violated the North American Free Trade Agreement (NAFTA) when he halted the Keystone XL project.
“News that a multinational corporation is using a free trade agreement to yet again challenge American domestic policy is troubling, but not surprising. After seven years of debate and analysis, the Obama Administration made the right decision to not pursue the Keystone XL pipeline. However, this decision is now under threat by a trade agreement that could impose massive fines on our country. By seeking more than $15 billion in damages, TransCanada is using our trade policy to undo decisions made by our democratically elected president.
“For decades, we have seen the negative effects that NAFTA has had on our country. From lost jobs, to reduced wages, the trade agreement has been a disaster for the American people. The lawsuit by TransCanada is the latest in a string of unintended and harmful consequences of a bad trade agreement and these problems will only multiply under the proposed Trans-Pacific Partnership, a free trade agreement being considered by the United States. Another recent example is the repeal of country of origin labeling by Congress after the World Trade Organization levied more than $1 billion in sanctions on the U.S. for labeling meat.
“The Trans-Pacific Partnership would effectively double the number of corporations that would be eligible to bring challenges to our domestic laws and policies. Thousands of powerful corporate interests in foreign countries, from Japan to Australia, would be empowered with rights that are not available to American-based companies, threatening domestic policies ranging from environmental regulations, to consumer protection laws. Congress must reject the Trans-Pacific Partnership. There's simply too much at stake for the American people.”
###