TransCanada Drops Keystone XL NAFTA Lawsuit One Hour After Trump Approves Pipeline Project

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Jonathon Berman, (202) 495-3033 or jonathon.berman@sierraclub.org

WASHINGTON, D.C. -- This morning, Donald Trump reversed the Obama Administration’s rejection of the Keystone XL tar sands pipeline, and within the hour, TransCanada, the company behind the massive pipeline project, announced it will drop its $15 billion North American Free Trade Agreement (NAFTA) complaint against the U.S. over the project’s rejection. According to reports, TransCanada's threat to continue the NAFTA suit contributed to the White House decision to renege on Trump's promise that the pipeline would be made with U.S. steel. NAFTA allows multinational corporations like TransCanada to sue governments in tribunals of corporate lawyers, and to use such suits as leverage to extract policy changes. TransCanada President and CEO Russ Girling spoke at a press conference with Trump this morning.

 

In response, Sierra Club's Responsible Trade Program Director Ilana Solomon released the following statement:

 

"For all his bluster, the Keystone XL boondoggle exposes Donald Trump for the failed businessman that he is. TransCanada dropped this NAFTA lawsuit only after Donald Trump caved on his demand that Keystone XL will be built with American steel. This is a crystal clear example of why corporate polluters back these anti-worker, anti-environment trade deals and offers further evidence that Donald Trump is losing on deal after deal.

 

“Keystone XL is far from a done deal, but that hasn’t stopped Big Oil from doing what corporate polluters and massive multinationals have done time and again: use provisions in trade deals to bully governments for the sake of their bottom line at the expense of communities and the environment. Donald Trump has always put corporations before people, and this case is no different.”

 

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About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with more than 2.7 million members and supporters. In addition to helping people from all backgrounds explore nature and our outdoor heritage, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.