TransCanada May Recoup Costs From U.S. If Obama Rejects Keystone

A two-decade old trade accord could let TransCanada Corp. recoup some of the $2.4 billion spent on its Keystone XL project, even if President Barack Obama rejects the pipeline.

A provision in the North American Free Trade Agreement would let the Canadian company file a claim against the U.S., accusing the government of discrimination. While trade specialists say a successful challenge would be a long shot, a Nafta tribunal could award damages for costs as well as lost profit.