Ethyl fights ban on MMT

28 April 1997 00:00  [Source: ICB]

Ethyl Corp is claiming that the Canadian ban on MMT is in breach of the Nafta agreement.

Controversy over the fuel additive methylcyclo-pentadienyl manganese tricarbonyl (MMT) continues with Ethyl filing a $250m claim against the Canadian government.

Ethyl claims that the Canadian ban on MMT is in breach of the North American Free Trade Agreement (Nafta).

Earlier this month the Canadian Senate passed Bill C-29 which bans the import of MMT. Part of Ethyl's concern is that the bill does not specifically ban the use of MMT in Canada but only prohibits its importation.

This is the first time that the Nafta legislation has been used to make a claim against the Canadian government.

'Ethyl was more than prepared to engage in meaningful consultation with the government as Nafta envisages. We were extremely disappointed in the government's refusal to consult,' said Chris Hicks, Ethyl's vice president for government relations. 'Now that the bill has been passed by the senate, the government has given us no choice but to seek compensation.'

The issue has become something of a political football in Canada, with the automotive industry, which says MMT affects emission control systems, and environmental lobbyists supporting the bill. The ban is opposed by oil refiners and local politicians concerned over possible job losses. Ethyl says that the ban could affect half of the sales of its Canadian subsidiary.

The use of MMT is criticised for producing elevated levels of manganese in me environment. A recent report by Health Canada stated that MMT does not represent a health risk. And an attempt by the Environmental Protection Agency in the US to ban MMT was defeated in the courts in 1995.

< previous article(VIDEO – ICIS news Americas Lunchtime Bulletin 18 January 2010)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly