Methanex Corporation, a Canadian marketer and distributor of methanol, has submitted a claim to arbitration under the UNCITRAL rules on its own behalf for alleged injuries resulting from a California ban on the use or sale in California of the gasoline additive MTBE. Methanol is an ingredient used to manufacture MTBE.
Methanex contends that a Califiornia Executive Order and the regulations banning MTBE expropriated parts of its investments in the United States in violation of Article 1110, denied it fair and equitable treatment in accordance with international law in violation of Article 1105, and denied it national treatment in violation of Article 1102. Methanex claims damages of $1 billion.
The United States denies that the tribunal has jurisdiction over the claims and denies that any of the alleged measures violated the NAFTA. A hearing on jurisdiction and admissibility was held in July 2001.