AbitibiBowater says it will fight the provincial government’s expropriation of its assets in Newfoundland. Wh…
AbitibiBowater says it will fight the provincial government’s expropriation of its assets in Newfoundland. When the papermaker confirmed plans to shutter its newsprint mill in the province, Danny Williams’ government responded with legislation that enabled the expropriation of the company’s dams and power stations in the Grand Falls region.
According to a report by Associated Press, AbitibiBowater now says it will seek to counter the legislation to see if it violates international trade agreements.
“It’s terribly unfortunate that this is the approach that is being taken,” AP reported Seth Kursman, spokesman for AbitibiBowater as saying. “Canada has been a very hospitable and welcoming environment for business, but this kind of action is simply unprecedented and has far-reaching NAFTA implications.”
Williams argues the company, by closing the mill, effectively broke a “covenant” with Newfoundland, and the province will not “give away” hydro assets to an organization that is no longer doing business there, AP reported.
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