Metalclad, Mexico feel little solace in ruling


You’d figure Grant Kesler, the CEO of Metalclad Corp. of Newport Beach, California, would be feeling victorious. On Aug. 30 an international tribunal ruled that Mexico must compensate Metalclad $16.7 million for losses it incurred in developing a Mexican hazardous-waste confinement site that it never was allowed to operate. Asked who won, Kesler’s answer was immediate. “No one,” he said. And Mexico certainly doesn’t feel like a winner; it immediately announced it will try to have the decision revised or thrown out. Disappointing both sides was a long-awaited ruling in the first case ever filed against Mexico under the North American Free Trade Agreement’s Chapter 11, which establishes protections for investors from one Nafta country who are undertaking projects in another. A panel... [Log in to read more]

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