Reuters reports that, “AbitibiBowater said on Thursday (it has) filed a C$500 million ($467 million) claim under the North American Free Trade Agreement, seeking compensation from a Canadian province for assets expropriated after the bankrupt forestry company closed a mill there.”
“Five months before the filing, the provincial government of Newfoundland and Labrador passed a bill allowing it to take over lands, timber and water-use rights in the Atlantic province — a move that AbitibiBowater claims violated international law.”
“AbitibiBowater is seeking damages of about C$500 million, plus additional costs and relief. It claims the province has violated the investment protection provisions of NAFTA, a deal signed by Canada, the United States and Mexico in 1994.”
“Representives of the province and the federal government would not comment immediately on the matter.”
