On February 24th, President Obama vetoed legislation that would have authorized construction of the Keystone XL Pipeline as it “conflicts with established executive branch procedures and cuts short thorough consideration of issues that could bear on our national interest.” It is still possible that President Obama will approve construction of the highly controversial pipeline. In fact, a number of outcomes for the executive review are still possible and a district court judge in York County, Nebraska, just granted local landowners a preliminary injunction against TransCanada’s use of eminent domain for the proposed pipeline in a move that further complicates the future of the pipeline.
One potential outcome is starting to attract a bit of attention; if President Obama were to deny the pipeline, TransCanada, or the Canadian government themselves could challenge the decision under the North American Free Trade Agreement (NAFTA). Former Canadian Prime Minister Brian Mulroney, in April 2014, said that a major tenet of NAFTA is that “the U.S. was guaranteed unfettered supply in exchange for unfettered access by Canadian exporters to its market.” While neither TransCanada nor the Canadian government have expressed a desire to move forward with such a challenge, bringing a case under NAFTA has been discussed as a last resort option. The fact that U.S. taxpayers might foot the bill for any fines levied could be enough to further intensify an already divisive political debate.
I’m far from expert about how NAFTA works. However I found a very insightful analysis in Alberta Oil (2014) that, among other things, suggests that NAFTA may have become obsolete.… Read more »
It is useless to comment on this issue because it is entirely political. There is no serious rational economic or environmental objection to the pipeline. Our political leadership opposes the… Read more »
Climate scientists tell us we can not burn more than 20~30% of the known fossil fuel reserves if we want to maintain a livable climate for our children. The tar… Read more »
The continuing Keystone saga depends on the Koch Brothers and Prime Minister Harper. Do the Kochs see a higher priced oil market ahead that justifies continued spending of lobby monies,… Read more »
The North American Free Trade Agreement (NAFTA) negotiated beginning in the late 1980’s and implemented on Jan. 1, 1994 eliminated trade and investment barriers between the U.S., Canada, and Mexico.… Read more »
Nice to hear that, given a Canadian Prime Minister who accepts the need for sustainability/Climate Change measures, there is a structure in place that could provide a path forward.
Oil production, transportation, and refining were of strategic importance to the Japanese and Germans in World War II. Likewise, development of Prudhoe Bay, and the Strategic Oil Reserve in Louisiana… Read more »
At this point, after so much discussion and study, KXL is solely a political issue. The rhetoric and misrepresentation from both sides does nothing to foster honest dialogue, only polarizes… Read more »
Opponents to KXL understand that the pipeline is an important symbol. Suggesting that the cancelation of the pipeline will not have a material impact on climate change is like saying… Read more »
In my view, the presidential veto of the Keystone Pipeline bill – passed by a Republican-controlled Congress – is mostly about partisan politics. The arguments on both sides have been… Read more »
Trade analysts and Lawyers have been projecting a NAFTA Chapter XI dispute by TransCanada against the U.S. for quite some time. Both foresee the success of an indirect expropriation argument… Read more »
After reading most of this discussion, I find little in the way of beneficial enlightenment. Common sense tells me that the proposal was a good one, and that the veto… Read more »