{"id":273154,"date":"2022-02-11T10:47:52","date_gmt":"2022-02-11T09:47:52","guid":{"rendered":"https:\/\/blog.jusmundi.com\/?p=273154"},"modified":"2023-08-23T16:36:05","modified_gmt":"2023-08-23T14:36:05","slug":"arbitration-team-of-the-month-united-mexican-states","status":"publish","type":"post","link":"https:\/\/dailyjus.com\/index.php\/2022\/02\/11\/arbitration-team-of-the-month-united-mexican-states\/","title":{"rendered":"United Mexican States"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Arbitration Team of the Month #17<\/h3>\n\n\n<h1><strong>Introduction<\/strong><\/h1>\n<p>Driven by the demand for data, the information &amp; communication sector (particularly the telecommunications sub-sector) has experienced sustained growth and remains attractive for foreign direct investment. The great number of investment treaty arbitrations in telecommunications reflect rising cross-border investments and host States\u2019 involvement in infrastructures, such as 5G networks, data centers, mobile towers, and subsea cables. According to Jus Mundi database, there are over <a href=\"https:\/\/jusmundi.com\/en\/search?page=1&amp;sort=desc&amp;lang=en&amp;document-types%5B0%5D=case&amp;case-types%5B0%5D=1&amp;case-economic-sector%5B0%5D=60\" target=\"_blank\" rel=\"noopener noreferrer\">600<\/a> investment arbitration case documents in the information and communication sector; more than half are under the <a href=\"https:\/\/jusmundi.com\/en\/search?page=1&amp;sort=desc&amp;lang=en&amp;document-types%5B0%5D=case&amp;case-types%5B0%5D=1&amp;case-economic-sector%5B0%5D=64\" target=\"_blank\" rel=\"noopener noreferrer\">telecommunications<\/a> sub-sector. Concluded cases with final awards decided in favor of States are <a href=\"https:\/\/jusmundi.com\/en\/search?page=1&amp;sort=desc&amp;lang=en&amp;document-types%5B0%5D=decision&amp;case-types%5B0%5D=1&amp;case-status%5B0%5D=5&amp;case-economic-sector%5B0%5D=64&amp;case-decision-types%5B0%5D=1\" target=\"_blank\" rel=\"noopener noreferrer\">twice<\/a> as many as those in favor of investors. Nowadays, especially with the impact of the pandemic, we are surrounded by remote connection and home media consumption. The current situation indicates that the focus and investment in telecommunications will remain high.<\/p>\n<p>This month, Jus Mundi continues the special edition of the Arbitration Team of the Month featuring a government legal team. With Mexico\u2019s recent victory in <a href=\"https:\/\/jusmundi.com\/en\/document\/decision\/en-eutelsat-s-a-v-united-mexican-states-none-currently-available-wednesday-16th-august-2017\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Eutelsat v. Mexico<\/em><\/a>, we are delighted to present Mexico\u2019s government counsel, the Direcci\u00f3n General de Consultor\u00eda de Comercio Internacional.<\/p>\n<h1><strong>Recent victory cases analysis: <\/strong><a href=\"https:\/\/jusmundi.com\/en\/document\/decision\/en-eutelsat-s-a-v-united-mexican-states-none-currently-available-wednesday-16th-august-2017\" target=\"_blank\" rel=\"noopener noreferrer\"><strong><em>Eutelsat v. Mexico<\/em><\/strong><\/a><\/h1>\n<p>In an <a href=\"https:\/\/jusmundi.com\/en\/document\/decision\/en-eutelsat-s-a-v-united-mexican-states-none-currently-available-wednesday-16th-august-2017\" target=\"_blank\" rel=\"noopener noreferrer\">award<\/a> dated September 15, 2021, an ICSID tribunal has dismissed a more than US$120 million claim against Mexico brought by Eutelsat, a French satellite operating giant, over the State\u2019s reservation requirement of satellite capacity.<\/p>\n<h3><strong>Facts<\/strong><\/h3>\n<ul>\n<li>In 2014, Eutelsat acquired local company Satmex, operator of three satellites providing telecommunications, with US$831 million.<\/li>\n<li>Mexico required Satmex to reserve a certain amount of satellite capacity for the government\u2019s signal transmission. Eutelsat alleged that the Mexican requirement was discriminatory and violated fair and equitable treatment, most favored nation treatment, full protection and security of the BIT.<\/li>\n<li>In 2017, Eutelsat brought its claim against Mexico under the <a href=\"https:\/\/jusmundi.com\/en\/document\/treaty\/en-agreement-between-france-and-mexico-for-the-promotion-and-reciprocal-protection-of-investments-france-mexico-bit-1998-thursday-12th-november-1998\" target=\"_blank\" rel=\"noopener noreferrer\">France &#8211; Mexico BIT (1998)<\/a>. The case was heard under the <a href=\"https:\/\/jusmundi.com\/en\/document\/rule\/en-icsid-arbitration-additional-facility-rules-2006-icsid-additional-facility-arbitration-rules-2006\" target=\"_blank\" rel=\"noopener noreferrer\">ICSID Arbitration Additional Facility Rules 2006<\/a> as Mexico did not ratify the <a href=\"https:\/\/jusmundi.com\/en\/document\/treaty\/en-convention-on-the-settlement-of-investment-disputes-between-states-and-nationals-of-other-states-icsid-convention-1965-thursday-18th-march-1965?su=%2Fen%2Fsearch%3Fquery%3DICSID%2520Convention%26page%3D1%26lang%3Den%26document-types%5B0%5D%3Dtreaty&amp;contents[0]=en&amp;contents[1]=fr\" target=\"_blank\" rel=\"noopener noreferrer\">ICSID Convention<\/a> until 2018.<\/li>\n<\/ul>\n<h3><strong>Tribunal constitution<\/strong><\/h3>\n<ul>\n<li><a href=\"https:\/\/jusmundi.com\/en\/p\/alfredo-bullard\" target=\"_blank\" rel=\"noopener noreferrer\">Alfredo Bullard Gonz\u00e1lez<\/a>&nbsp; President<\/li>\n<li><a href=\"https:\/\/jusmundi.com\/en\/p\/guido-santiago-tawil\" target=\"_blank\" rel=\"noopener noreferrer\">Guido Santiago Tawil<\/a>&nbsp; Appointed by the investor<\/li>\n<li><a href=\"https:\/\/jusmundi.com\/en\/p\/marcelo-g-kohen\" target=\"_blank\" rel=\"noopener noreferrer\">Marcelo G. Kohen<\/a>&nbsp; Appointed by the State<\/li>\n<li><a href=\"https:\/\/jusmundi.com\/en\/p\/francisco-orrego-vicuna\" target=\"_blank\" rel=\"noopener noreferrer\">Francisco Orrego Vicu\u00f1a<\/a>&nbsp; Appointed by the investor (replaced)<\/li>\n<\/ul>\n<h3><strong>Tribunal\u2019s decision<\/strong><\/h3>\n<p>The tribunal rejected Eutelsat\u2019s claims on the merits and awarded Mexico a portion of its legal costs.<\/p>\n<h1><strong>Track record highlights<\/strong><\/h1>\n<p>According to a Mexican press release, this is the third arbitration award rendered in favor of the State with the current administration.<\/p>\n<h3><a href=\"https:\/\/jusmundi.com\/en\/document\/decision\/en-vento-motorcycles-inc-v-united-mexican-states-endorsement-of-the-ontario-superior-court-of-justice-wednesday-1st-december-2021#decision_18666\" target=\"_blank\" rel=\"noopener noreferrer\"><strong><em>Vento Motorcycles v. Mexico<\/em><\/strong><\/a><\/h3>\n<p>In July 2020, Mexico defeated a US$3 billion <a href=\"https:\/\/jusmundi.com\/en\/document\/treaty\/en-north-american-free-trade-agreement-nafta-thursday-17th-december-1992#art_3765\" target=\"_blank\" rel=\"noopener noreferrer\">NAFTA<\/a> claim brought by a US motorcycle manufacturer, Vento, over customs duty imposed on its motorcycles assembled in the US and exported to Mexico. The tribunal found that the joint venture established by contract between Vento and a Mexican company, MotorBike, qualified as an <a href=\"https:\/\/jusmundi.com\/en\/document\/wiki\/en-definition-of-investment\" target=\"_blank\" rel=\"noopener noreferrer\">investment<\/a>. On the merits, the tribunal found there was no breach of the <a href=\"https:\/\/jusmundi.com\/en\/document\/wiki\/en-national-treatment\" target=\"_blank\" rel=\"noopener noreferrer\">national treatment<\/a> and of the <a href=\"https:\/\/jusmundi.com\/en\/document\/wiki\/en-most-favoured-nation-treatment\" target=\"_blank\" rel=\"noopener noreferrer\">most-favored-nation treatment<\/a> standards, as the strategic business structure of the joint venture was not comparable with its competitors.<\/p>\n<p>In December 2021, a Canadian court <a href=\"https:\/\/jusmundi.com\/en\/document\/decision\/en-vento-motorcycles-inc-v-united-mexican-states-endorsement-of-the-ontario-superior-court-of-justice-wednesday-1st-december-2021#decision_18666\" target=\"_blank\" rel=\"noopener noreferrer\">rejected<\/a> Vento\u2019s attempt to introduce new <a href=\"https:\/\/jusmundi.com\/en\/document\/wiki\/en-evidence-in-investor-state-arbitration\" target=\"_blank\" rel=\"noopener noreferrer\">evidence<\/a> in the set-aside proceedings. The judge believed new evidence could have been presented during the arbitration proceedings.<\/p>\n<h3><a href=\"https:\/\/jusmundi.com\/en\/document\/decision\/en-jorge-luis-blanco-joshua-dean-nelson-and-tele-facil-mexico-s-a-de-c-v-v-united-mexican-states-award-friday-5th-june-2020\" target=\"_blank\" rel=\"noopener noreferrer\"><strong><em>Joshua Dean Nelson v. Mexico<\/em><\/strong><\/a><\/h3>\n<p>In June 2020, Mexico defeated a US$472 million <a href=\"https:\/\/jusmundi.com\/en\/document\/treaty\/en-north-american-free-trade-agreement-nafta-thursday-17th-december-1992#art_3765\" target=\"_blank\" rel=\"noopener noreferrer\">NAFTA<\/a> claim brought by a US national over his investment in Mexico\u2019s telecommunications sector. The tribunal dismissed Nelson\u2019s <a href=\"https:\/\/jusmundi.com\/en\/document\/wiki\/en-expropriation\" target=\"_blank\" rel=\"noopener noreferrer\">expropriation<\/a> argument because there was no right that could have been expropriated as the agreement had not been signed when the claim was introduced. The tribunal also found the threshold for breaching the <a href=\"https:\/\/jusmundi.com\/en\/document\/wiki\/en-fair-and-equitable-treatment\" target=\"_blank\" rel=\"noopener noreferrer\">fair and equitable treatment<\/a> standard to be particularly high and concluded that there had been no <a href=\"https:\/\/jusmundi.com\/en\/document\/wiki\/en-denial-of-justice-in-fet\" target=\"_blank\" rel=\"noopener noreferrer\">denial of justice<\/a> in the Mexican court proceedings.<\/p>\n<h1><strong>Table of investor-State arbitration cases involving Mexico (recent victories\/pending cases)*<\/strong><\/h1>\n<p>Please click <a href=\"https:\/\/jusmundi.com\/en\/search?page=1&amp;lang=en&amp;document-types%5B0%5D=case&amp;case-organizations%5B0%5D=1307\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a> to see all types of cases involving Mexico available on Jus Mundi.<\/p>\n<p>We selected a few recent victories and ongoing cases of Mexico in the table below.<\/p>\n<p>[table id=29 \/]<\/p>\n<p>(Note*: This table is not exhaustive.)<\/p>\n<p>Congratulations to the team again, and Jus Mundi wishes them good luck for the future!<\/p>","protected":false},"excerpt":{"rendered":"<p>This month, United Mexican State is nominated as Jus Connect Arbitration Team of the Month. Find out more<\/p>\n","protected":false},"author":3,"featured_media":275151,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"custom","single_blog_custom":"274736","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"author","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"hide","share_float_style":"share-monocrhome","show_share_counter":"0","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"0","show_post_author_image":"0","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"0","show_post_reading_time":"0","post_reading_time_wpm":"300","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"0","show_prev_next_post":"0","show_popup_post":"0","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"0"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"40","hide":""},"jnews_social_meta":{"fb_title":"Jus Connect Arbitration Team of the Month: United Mexican States","fb_description":"This month, United Mexican States is nominated as Jus Connect Arbitration Team of the Month. 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