By Luke Eric Peterson
Victory for Foreign Affairs over Chemtura may scare Dow off.
The lawyers at the Department of Foreign Affairs and International Trade are not bragging about it—at least not to date—but they’ve just won an impressive victory in an $80 million-plus NAFTA lawsuit. Earlier this month, a panel of three arbitrators dismissed claims filed by the US chemical company Chemtura under Chapter 11 of the North American Free Trade Agreement.
Chemtura had sought to hold Canada liable for financial losses related to the government’s phase-out of lindane, a hazardous agricultural chemical. However, the company failed to persuade arbitrators that government regulators acted without regard for scientific evidence or due process.