Award

Metalclad v Mexico

ICSID · Investment (ICSID and treaty) · Mexico · 30 August 2000

Why it matters

Metalclad Corporation v. United Mexican States, an investment-treaty arbitration administered by ICSID (case no. ARB(AF)/97/1), in which a foreign investor brought claims against a state under an investment treaty. In the outcome, Award rendered on August 30, 2000. For a student, it is a worked example of investor-state dispute settlement: how an ICSID tribunal weighs a state's right to regulate against the treaty protections owed to foreign investors.

Summary

Metalclad Corporation v. United Mexican States: an ICSID award (ARB(AF)/97/1). In the outcome, Award rendered on August 30, 2000. The tribunal's full reasoning is set out in the original.

The detail

Parties: Metalclad Corporation v. United Mexican States

Case number: ICSID Case No. ARB(AF)/97/1

Outcome: Mexico liable for indirect expropriation and unfair treatment; around US$16.7m awarded, later trimmed on review.

Quantum: US$16.7m (reduced after court review in British Columbia)

Applicable law: NAFTA Chapter 11 (Articles 1105 fair and equitable treatment, 1110 expropriation); ICSID Additional Facility Rules.

Issues in play: Federal assurances against local municipal refusals: can a town's permit refusal, after the central government said yes, amount to the state taking your investment?

Read the full decision at italaw

Locus Standi links to the source decision and publishes its own plain-language summary. It does not reproduce the text of the award.

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