Mexico in the case against the Vulcan Materials subsidiary

The Secretary of the Economy emphasized that Mexico has won the case against the subsidiary of Vulcan Materials Company before the World Bank's International Centre for Settlement of Investment Disputes (ICSID), refuting the company's claims to the contrary, following the publication of the final award.

The press release announced that the final award issued by the Arbitral Tribunal in the case initiated by Legacy Vulcan LLC, a subsidiary of Vulcan Materials Company, before ICSID, is now available on that organization’s official website.

Since late last July, the Ministry of Economy has stated that ICSID generally ruled in Mexico’s favor in the international arbitration case filed by Vulcan Legacy LLC, following the closure of its operations and the ban on limestone mining off the coast of Quintana Roo due to environmental damage.

“The Government of Mexico emphatically states that it does not share the view expressed by the company in its press release and refers to the public text of the Award as the sole source that faithfully reflects the Tribunal’s decision. It is incorrect to assert that the dispute resolved by the Tribunal goes ‘beyond’ the Vulcan case. To give just one example, such a claim ignores the fact that Mexico is the primary destination for investment from the United States of America,” the agency argued in the statement.

Similarly, it was emphasized that the measures challenged by Legacy Vulcan are only inconsistent with NAFTA and could give rise to an obligation to provide compensation. The amount awarded by the Tribunal represents less than 1% of the maximum amount claimed by the company.

“In any case, the Government of Mexico remains open to dialogue with the company, within a framework of mutual respect and the rule of law. At the same time, and regardless of any legal actions that may be filed following the issuance of the award, Mexico will continue to firmly defend its sovereignty and its natural resources,” they added.