Mercer International Inc. Announces Decision in NAFTA Claim
March 06 2018 - 6:29PM
Mercer International Inc. (Nasdaq:MERC) (TSX:MERC.U) ("Mercer" or
the "Company") announces that it has received the decision of the
tribunal in respect of its previously announced claim against the
Government of Canada under the North American Free Trade Agreement
("NAFTA").
In a split decision, a majority of the tribunal
ruled that it lacked jurisdiction to decide certain of the
Company's claims under NAFTA and, with respect to the Company's
other NAFTA claims, that they were highly complex and technical and
that it would be inappropriate for the tribunal to re-determine
matters calling for specialist judgment and, as a result, there was
no violation of NAFTA. As is customary in these matters, the
tribunal awarded costs to Canada of approximately $6.9 million.
Mercer had initiated its NAFTA claim against the
Government of Canada in January 2012. The claim related to the
Company's investment in the Celgar mill and arose from the
treatment of the mill's energy generation assets and operations by
the Province of British Columbia, primarily through the actions of
B.C. Hydro and Power Authority, a provincially owned and controlled
enterprise, and the British Columbia Utilities Commission, a
provincial government regulatory agency. The basis of the claim was
that the Celgar mill had received unfair and discriminatory
treatment regarding its ability to purchase and sell energy
compared to other pulp mills and entities that generate and sell
electricity within the Province of British Columbia.
David Gandossi, President and CEO of Mercer,
commented: "While we are disappointed in the outcome, we believe
that it was important for the Company to bring this claim in order
to seek the fair treatment of its investments in Canada. We thank
the members of the tribunal for their time and effort in
adjudicating this matter."
Mercer International Inc. is a global forest
products company with operations in Germany and Canada with
consolidated annual production capacity of 1.5 million tonnes of
NBSK pulp and 550 million board feet of lumber. To obtain further
information on the company, please visit its web site at
http://www.mercerint.com.
APPROVED BY:
Jimmy S.H. LeeExecutive Chairman(604) 684-1099
David M. GandossiChief Executive Officer(604) 684-1099
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