| Media Note Office of the Spokesman Washington, DC January 9, 2003 NAFTA Tribunal Issues Award in ADF Group CaseAn international arbitration tribunal today issued an award in the case of ADF Group Inc. v. United States of America. The tribunal found in favor of the United States, rejecting ADF Group’s claims in their entirety.
ADF is a Canadian company that fabricates structural steel. In the late 1990s, an ADF subsidiary subcontracted to supply structural steel for the Springfield Interchange highway improvement project in northern Virginia. As contemplated by the federal law that funds state highway projects, the ADF subcontract contained a “Buy America” clause providing that only U.S. steel could be used in the project. ADF submitted a claim to arbitration against the United States in mid-2000. ADF asserted that the “Buy America” law prevented it from fabricating the steel for the project in Canada and violated the NAFTA’s investment chapter. ADF claimed $90 million in damages. In today’s unanimous award, the tribunal rejected ADF’s claims under two NAFTA provisions because those provisions do not apply to government procurement such as the supply of steel for the Springfield Interchange project. The tribunal also found that application of the “Buy America” requirements to ADF did not violate international law or discriminate against ADF on the basis of its nationality. The members of the tribunal are Judge Florentino Feliciano, Professor Armand de Mestral and Carolyn B. Lamm, Esq. The Office of the Legal Adviser of the Department of State represents the United States in this case. The full text of the award is available on-line at http://www.state.gov/s/l/c3754.htm.
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