New California fuel rule may violate NAFTA: lawyer

CALGARY, Alberta (Reuters)

The measures to slash such emissions would force refiners to consider the carbon footprint of the fuels they produce, a potential blow to synthetic crude upgraded from Alberta’s oil sands, whose production emits more carbon-dioxide than conventional oil.

However, the state may have no business imposing such rules on oil produced in other countries, a Canadian lawyer said, and the provisions may violate international trade treaties.

“There’s definitely a NAFTA case and a WTO case. There’s no doubt in my mind about it,” said Simon Potter, a partner at the McCarthy Tetrault law firm whose practice includes trade and competition law.

Reuters