Canada being sued for NAFTA violation by private American wind energy company

Local procurement rules in Ontario Green Energy Act threatened.
July 21, 2011

An Texan wind power firm is taking advantage of a NAFTA clause that lets companies sue the Canadian government if provinces do not comply with the agreement. Shawn McCarthy of the Globe and Mail explains why the Ontario Green Energy Act is being targeted, and what the Ontario Liberals are doing to defend it.

“Ontario’s controversial green energy policy is facing a new assault as famed oilman tycoon T. Boone Pickens has launched a $775-million NAFTA challenge alleging the government has discriminated against his privately owned wind energy company.

With the Dallas-based Mesa Power Group’s action, the Liberal government is now fighting multi-front battles over its Green Energy Act and the feed-in tariff that pays renewable energy companies premium prices for electricity – so long as they procure a percentage of the goods and services in the province.

Ontario Conservative Leader Tim Hudak has vowed to kill the Green Energy Act if his party wins the October election, while Japan has challenged the act’s local procurement rules at the World Trade Organization…”

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