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Diplomacy in Action

Cargill, Inc. v. United Mexican States

Cargill, Inc., a U.S. corporation, filed a notice of arbitration against Mexico under the ICSID Additional Facility Rules on behalf of itself and its wholly-owned subsidiary, Cargill de Mexico S.A. de C.V., a Mexican company. Cargill claims that its investments in the high fructose corn syrup industry in Mexico have been adversely impacted by Mexico's 2002 adoption of a tax on high fructose corn syrup. Cargill alleges that the tax is aimed at protecting Mexico's domestic sugar producers and excluding high fructose corn syrup from the soft drink sweetener market. Cargill asserts that Mexico's tax on high fructose corn syrup violates the national treatment obligation under NAFTA Article 1102, the most-favored-nation obligation under NAFTA Article 1103, the minimum standard of treatment obligation under NAFTA Article 1105, the prohibition on performance requirements in NAFTA Article 1106 and the expropriation obligation under NAFTA Article 1110. Cargill seeks damages in excess of $100 million.

For further information and documents concerning this claim, click here.

-01/31/11   U.S. Factum of the Intervenor, submitted to the Court of Appeal for Ontario


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