TransCanada has brought an action under the Investor-State Dispute Resolution provisions of NAFTA for more than 15 billion dollars based on the over 8-year delay on approval of Keystone XL The amount claimed would increase significantly if the delay were extended because the delay was extended because the US imposed a 'Buy American" condition.

Given that when the US-Canada Free Trade Agreement was initially concluded its cornerstone was a commitment by Canada that it would always facilitate the selling of Canadian oil & Gas at international market prices in the US as domestically in Canada regardless of international conditions, there can be little doubt that TransCanada would succeed if this action proceeds.

Leaving aside whether one favours Oilsands development or not, the US has continued to treat Keystone XL as a domestic political football making a joke of its NAFTA responsibilities.

Canada and TransCanada need to stand firm in their insistence on an equitable resolution.