Mexico loses international arbitration to Canadian company LMC

On September 20, an international court established under the North American Free Trade Agreement (NAFTA) decided that Mexico incurred a denial of justice by domestic courts It failed to provide Lion Mexico Consolidated LP (LMC) a fair and equitable treatment under the treaty, for which it would have to pay $47 million.

In a document issued by the Ministry of Economy (SE), the The Government of Mexico expressed its regret at the arbitral tribunal’s decision He stressed that he will carefully analyze the content of the award, in order to determine the legal procedures available to him and to be able to implement them.

“The Court finds Mexico has violated NAFTA, derived from the judicial authority’s actions, which ordered Mexico to pay in favor of the investor $ 47 million in damages, in addition to paying a proportional part of the costs of the action,” he emphasized.

Lion Mexico Consolidated LP started arbitration against Mexico since 2015The claim arose due to a ruling by the Ninth Commercial Court of the State of Jalisco on June 27, 2012, which resulted in the cancellation of three promissory notes, and three mortgages that were in favor of the LMC, as this was followed through various judicial and criminal proceedings.

LMC noted that the file Cancellation of bills of exchange and mortgages which were in his favour, in addition to all other actions, presented irregularities on his account, and the said actions allegedly constituted a violation by the Mexican government of NAFTA.

“La rLMC’s initial claim against Mexico exceeded $220 million. However, Mexico has submitted judicial objections to the court given that the promissory note is not an investment under the North American Free Trade Agreement,” the Ministry of Economy explained.

See also  Remote work slows recovery of corporate travel

In this sense, he added, the court ruled in Mexico’s favor on these objections, and that in addition, during the merits stage, the court had rejected a portion of LMC’s compensation claims, including the application of 6 per cent interest.

“who is she, A conflict prevention strategy has been developed, with the aim of achieving effective coordination between all levels of government, preventing prizes unfavorable to Mexico, and ensuring compliance with international obligations enshrined in trade and investment treaties.

AMP

Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top