Abstract

Following from "Metalclad In Mexico (A)," this case details two parallel processes. The first traces the process by which Metalclad, a small California company, ultimately wins a NAFTA dispute settlement process judgment against Mexico for illegal expropriation of the company's property in the state of San Luis Potosi. Second, the case discusses the problems that led to the company's failed investment in a second waste disposal facility, this time in the state of Aguascalientes. With this last failure, Metalclad sold its assets and left Mexico.

 

Teaching
As with "Metalclad in Mexico (A)," this case focuses heavily on host-investor relations and on the politics of the environment. This case allows students to compare and contrast the lessons of "Metalclad (A) with the company's experiences in Aguascalientes. At the same time, the case facilitates a discussion on the utility of multinational dispute settlement mechanism for the protection of company interests.

Case number:
A03-01-0019
Year:
Setting:
Mexico
Length:
8 pages
Source:
Library/Field