Dow AgroSciences may seek compensation for Canadian pesticide ban
22 Oct, 2008 LM Direct!Globeandmail.com is reporting that Dow AgroSciences is considering using the controversial investor-protection provisions of the North American free-trade agreement to seek compensation from the federal government over Quebec's ban on the cosmetic use of pesticides.
The company, a maker of 2,4-D, filed a notice of intent to submit a claim to arbitration under NAFTA in late August. The 27-page legal action was posted Oct. 21 on the Foreign Affairs website, where it is listed as a dispute to which Canada is a party.
In its notice, Dow says the Quebec ban outlawing the use of pesticides for “cosmetic purposes” breaches legal protections owed by Canada to U.S. investors under the trade agreement.
NAFTA has provisions, known as Chapter 11, that restrict the ability of a country to take measures “tantamount to nationalization or expropriation” of an investment from a firm from another NAFA member. Besides Canada, the United States and Mexico are in the trade pact.
The Indianapolis-based company, whose 2,4-D is a standard ingredient in many commercial herbicides, is seeking compensation of not less than $2-million, plus legal costs and yet-to-be specified damages, according to the article.
To read the entire article, “Ban on pesticides may face NAFTA test,” on globeandmail.com click here.
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