Dispute Settlement
NAFTA - Chapter 11 - Investment
Cases Filed Against the Government of the United Mexican States
Current
Arbitrations to which the United Mexican States is a Party
Fireman's Fund v. United
Mexican States
Fireman's Fund Insurance Company, a United States corporation that
sells personal and business insurance, filed a claim against Mexico
in October 2001 alleging that Mexico breached its obligations under
Chapter Eleven of the North American Free Trade Agreement by facilitating
the purchase of debentures denominated in Mexican pesos and owned
by Mexican investors, but did not facilitate the purchase of debentures
denominated in U.S. dollars and owned by Fireman's Fund.
A copy of the legal documents pertaining to this case can be found
on Mexico's
Secretaría de Economía website.
Robert J. Frank v. United
Mexican States
Robert J. Frank, a United States citizen, filed a claim against
Mexico in August 2002 alleging that the expropriation of beachfront
property belonging to him breached Mexico's obligations under the
North American Free Trade Agreement.
A copy of the legal documents pertaining to this case can be found
on Mexico's
Secretaría de Economía website.
Corn Products
International, Inc. (CPI) v. United Mexican States
Corn Products International, Inc., a U.S. corporation,
filed a Notice of Arbitration against Mexico in October 2003 on
behalf of itself and its wholly-owned subsidiary, Arancia Corn Products,
S.A. de C.V., a Mexican company. Corn Products claims that Mexico's
adoption of a tax on high fructose corn syrup breaches Mexico's
obligations under Chapter Eleven of the North American Free Trade
Agreement.
A copy of the legal documents pertaining to this case can be found
on Mexico's
Secretaría de Economía website.
Archer
Daniels Midland Co. and Tate & Lyle Ingredients Americas, Inc.
v. United Mexican States
Archer Daniels Midland Company (ADM) and A.E.
Staley Manufacturing Company (Staley) are both U.S. corporations
that own a joint venture in Mexico, ALMEX, which is a leading producer
of high fructose corn syrup ("HFCS"). ADM and Staley filed
a Notice of Arbitration against Mexico in August 2004 on behalf
of themselves and ALMEX. They claim that Mexico's adoption of a
tax on certain products containing high fructose corn syrup breaches
Mexico's obligations under Chapter Eleven of the North American
Free Trade Agreement.
A copy of the legal documents pertaining to this case can be found
on Mexico's
Secretaría de Economía website.
Previous
Arbitrations to which the United Mexican States was a Party
Azinian et al. v. United Mexican
States
Mr. Azinian along with other shareholders in a Mexican
company, Desona, filed a claim in March 1997 alleging that the City
of Naucalpan's termination, without cause, of a concession contract
that had been awarded to Desona to operate a landfill and waste
management system for the city breached Mexico's obligations under
Chapter Eleven of the North American Free Trade Agreement.
In its award of November 1, 1999, the tribunal found that the annulment
of the concession contract did not violate Mexico's obligations
under NAFTA and, accordingly, dismissed all allegations against
the Mexican government.
A copy of the legal documents pertaining to this case can be found
on Mexico's
Secretaría de Economía website.
GAMI Investments Inc. v.
United Mexican States
GAMI Investments Inc., a U.S. corporation which claims to hold
an interest in a Mexican sugar production company, submitted a claim
against Mexico in June 2002. GAMI alleged that Mexico was breaching
its obligations under Chapter Eleven of the North American Free
Trade Agreement by expropriating sugar mills owned by five subsidiaries
of its investment and by regulating the sugar industry in a discriminatory
and arbitrary manner.
In its award of November 15, 2004, the Tribunal dismissed GAMI's
claims in their entirety.
A copy of the legal documents pertaining to this case can be found
on Mexico's
Secretaría de Economía website.
International Thunderbird
Gaming Corp. v. United Mexican States
International Thunderbird Gaming Corporation, a Canadian
company that owns and operates gaming and entertainment facilities,
submitted a claim against Mexico in August 2002. Thunderbird claims
that the regulation and closure of its gaming facilities by the
Mexican government agency that has jurisdiction over gaming activity
and enforcement breached Mexico's obligations under Chapter Eleven
of the North American Free Trade Agreement.
On January 26, 2005, the Arbitral Tribunal rendered
its final award. It dismissed Thunderbird's claims in their entirety.
On April 24, 2006, Thunderbird filed a Motion to Vacate
the Arbitrators' decision in front of the Federal Court of Mexico.
A copy of the legal documents pertaining to this case can be found
on Mexico's
Secretaría de Economía website.
Marvin Roy Feldman Karpa
(CEMSA) v. United Mexican States
Marvin Feldman, a U.S. citizen, submitted a claim on behalf of
CEMSA, a registered foreign trading company and exporter of cigarettes
from Mexico, in April 1999. CEMSA alleged that the denial of benefits
of a law that allowed certain tax refunds to exporters breached
Mexico's obligations under Chapter Eleven of the North American
Free Trade Agreement.
The Tribunal rendered its final decision on December 12, 2002.
The Tribunal found that Mexico had violated its national treatment
obligations under the NAFTA. Mexico initiated a statutory review
of the award in the Ontario Superior Court of Justice to set aside
parts of the Tribunal's award. The hearings took place in November,
2003 and a decision was rendered on December 3, 2003. The judge
dismissed Mexico's application. Mexico filed an appeal of this decision
with the Court of Appeal for Ontario.
On January 11, 2005, the Court of Appeal for Ontario rejected Mexico's
appeal.
A copy of the legal documents pertaining to this case can be found
on Mexico's
Secretaría de Economía website.
Metalclad Corp. v. United
Mexican States
The Metalclad Corporation (Metalclad), a U.S. waste
disposal company, filed a claim against Mexico in January, 1997.
Metalclad's asserted, inter alia, that Mexico's failure to grant
it a municipal licence to operate its hazardous waste treatment
facility and landfill site and the decree declaring the area where
the facility and site were located an ecological zone, after the
company had invested a substantial amount in its operation, constituted
a breach of Mexico's obligations under Chapter Eleven of the North
American Free Trade Agreement.
In August 2000, the tribunal issued an Award in favour of Metalclad.
Mexico petitioned the Supreme Court of British Columbia in a statutory
review to set aside the Award of the tribunal on the grounds that
it exceeded its jurisdiction and that enforcing the award would
violate public policy. The Supreme Court of British Columbia set
aside the award in part.
A copy of the legal documents pertaining to this case can be found
on Mexico's
Secretaría de Economía website.
Waste Management Inc. v.
United Mexican States
In 1998, USA Waste Services, Inc. (now Waste Management, Inc.),
a United States waste disposal company, which owns a USA Waste Mexican
subsidiary, filed a claim alleging actions of the State of Guerro
and the municipality of Acapulco breached Mexico's obligations under
Chapter Eleven of the North American Free Trade Agreement.
The tribunal issued an award on June 2, 2000, dismissing the investor's
claim because Waste Management had failed to submit a valid waiver
as required under Section B of Chapter Eleven. The case, therefore,
was improperly before the tribunal.
A copy of the legal documents pertaining to this case can be found
on Mexico's
Secretaría de Economía website. (Waste Management I)
Waste Management initiated a second arbitral proceeding on September
27, 2000. Following a jurisdictional hearing in early February 2002,
the Tribunal issued an Award on June 26, 2002, allowing this new
proceeding to go forward.
In its award of April 30, 2004, the Tribunal dismissed all allegations
against the Mexican government.
A copy of the legal documents pertaining to this case can be found
on Mexico's
Secretaría de Economía website. (Waste Management II)
Notices Received
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