The agency headed by Raquel Buenrostro explained that on August 19, 2024, the Arbitration Tribunal established to hear this case under the North American Free Trade Agreement (NAFTA) unanimously ruled in favor of Mexico that it did not have jurisdiction to resolve the claims presented by the Claimants, thereby dismissing the case in its entirety.
The Tribunal also ordered the Claimants to pay Mexico approximately $400,000 in arbitration costs.
The Ministry of Economy explained that the Alicia Grace et al. case, known as Oro Negro, was administered by the International Centre for Settlement of Investment Disputes (ICSID), belonging to the World Bank, in which the plaintiffs claimed more than 270 million dollars against Mexico.
“The outcome of this arbitration is an important achievement for the Mexican State and a valuable precedent in investment arbitration. In essence, the Tribunal determined that it lacked jurisdiction to resolve a case in which individuals with dual nationality, with Mexican nationality as dominant and effective, filed claims against their own country,” the agency said in a statement.
In addition, the Tribunal found that several Claimants lacked standing to bring claims against Mexico under NAFTA.
The award is currently being reviewed to identify any confidential information. The award will then be published on the ICSID website.
