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ARTICLE · 28 AUGUST 2019

NAFTA Arbitration Panel Expands Opportunities To Consent To Arbitration In B-Mex, LLC v. Mexico

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The partial award lays a foundation for understanding consent and waiver for international arbitration under the North American Free Trade Agreement.

United StatesLitigation, Mediation & Arbitration
Soledad G. O'Donnell
Soledad G. O'Donnell
Sarah Reynolds
Sarah Reynolds
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In a recent international investment dispute, B-Mex, LLC v. Mexico, a majority tribunal upheld jurisdiction over many claims made by US investors against the Mexican government and awarded the investors some of their interim legal costs. The partial award lays a foundation for understanding consent and waiver for international arbitration under the North American Free Trade Agreement (NAFTA).

Background

The claimants, American investors in Mexican gaming companies, allege that Mexico's government illegally closed the local companies' gaming facilities and otherwise interfered with their operations in a discriminatory manner. The claimants argue that Mexico breached NAFTA Articles 1102 (National Treatment), 1103 (Most-Favored Nation Treatment), 1105 (Minimum Standard of Treatment) and 1110 (Expropriation and Compensation). The claimants also allege that the Mexican government "may have unlawfully intervened" in judicial proceedings "by threatening certain judges."

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