TC Energy alleges that the Biden administration breached the United State’s NAFTA obligations during Joe Biden’s first day in office when he revoked a key construction permit for the project.
TC Energy announced that they will be “seeking to recover more than US$15 billion in damages that it has suffered as a result of the U.S. Government’s breach of its NAFTA obligations.”
The pipeline project, which would have connected Canada and the U.S. energy systems, was initially granted the permit by President Trump.
In response to the revocation of the permits by Joe Biden, Jason Kenney the Premier of Alberta wrote a statement echoing concern over Biden’s plans to revoke the project.
“Doing so would kill jobs on both sides of the border, weaken the critically important Canada-US relationship, and undermine US national security by making the United States more dependent on OPEC oil imports in the future.”
Adding that oil-producing countries like Venezuela and Saudi Arabia do not share the same commitment as Canada and the United States “to environmental stewardship, combating climate change, or North American energy security”.
In March 2021, 21 states filed a lawsuit against the Biden administration for revoking the pipeline permit. The multistate lawsuit alleges that President Biden does not have the unilateral authority to change energy policy that Congress has set.