SUPREME COURT GRANTS REQUEST TO HALT FEDERAL GOVERNMENT'S PLANNED BUDGET REDUCTION FOR SAN LUIS POTOSI STATE.

SourceMex Economic News & Analysis on Mexico | May 22, 2002 | Copyright

Mexico's highest court (Suprema Corte de Justicia de la Nacion, SCJN) has granted a request that the federal government suspend a planned reduction in funds for San Luis Potosi state this year in connection with damages due to be paid to US company Metalclad.

A dispute-resolution panel created under the North American Free Trade Agreement (NAFTA) ruled that Mexico violated Metalclad's rights as an investor, and directed the government to pay US$15.6 million in damages (see SourceMex, 2001-06-20).

The NAFTA panel's ruling, handed down in September 2000, said ...

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