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Canada Denies St Marys Cement Chapter 11 NAFTA Claim

St Marys Cement launches two new legal proceedings

We have recently learned that the Federal Government of Canada has denied a Chapter 11 Claim for Arbitration filed last year by St Marys Cement under the North American Free Trade Agreement or NAFTA. In its claim St Marys Cement was seeking $275 million in compensation for actions taken by the Province of Ontario to block the proposed Flamborough Quarry.

Officials from Foreign Affairs and International Trade explain that the grounds for the denial were that St Marys VCNA, LLC (the party filing the claim as an US investor) does not have “substantial business activities” in Canada. And that St Marys VCNA, LLC is wholly controlled by a Brazilian company and Brazil is not a signatory to NAFTA.

In response we understand from a St Marys Cement press release that the company “is pursuing another NAFTA claim and a Judicial Review to the Federal Court of Canada”. These new legal actions would be in addition to the legal actions St Marys Cement already has underway at the Provincial level.

While not experienced in international law and trade agreements, we are of the opinion that the Government of Canada’s position seems appropriate given that the proposed Flamborough Quarry was being pursued by an existing Canadian company operating in our Province. We continue to believe that launching challenges such as the NAFTA claims are a demonstration that St Marys Cement is reaching for tactics.

Please plan on attending the FORCE Annual Public Meeting where this and the other recent developments will be discussed. We are very pleased to have Councillors Judi Partridge & Robert Pasuta, MPP Ted McMeekin, MP David Sweet joining us. Given the activities underway at several levels of government their comments will be particularly relevant.

2012 FORCE Annual Public Meeting
Tuesday April 10th, 7:00pm

Our Lady of Mount Carmel Catholic Elementary School
1624 Centre Road, Carlisle

Special Guests: Councillors Judi Partridge & Robert Pasuta, MPP Ted McMeekin, MP David Sweet Come and find out how our Communities plan to meet the St Marys Cement challenges and what we can expect from each level of government.

This assault on our Communities was launched back in 2004; it is now 2012 and the trucks aren’t rolling and the safe, clean water is still flowing. Our Communities should be incredibly proud of that accomplishment. Perseverance on our behalf, along with our professional and substantive approach, will pay off. Let’s keep doing what we have done for these past eight years and keep it that way!



Together We Will Succeed!