AbitibiBowater today filed a Notice of Arbitration under the North American Free Trade Agreement ("NAFTA") with regards to the expropriation of its assets and rights in Newfoundland and Labrador, Canada. The Company contends that the provincial government's enactment in December 2008 of Bill 75, which expropriates an extensive array of the Company's rights and assets, was arbitrary, discriminatory and illegal under international law.
The claim seeks direct compensation for damages of approximately C$500 million, plus additional costs and relief deemed just and appropriate by the Arbitral Tribunal. This is one of the largest claims ever filed against Canada under NAFTA. Under international law, the Canadian Federal Government is responsible for the actions of Newfoundland and Labrador in violation of the investment protection provisions of NAFTA.