Thursday, December 4, 2025 8:42 am

Mexico wins arbitration case against U.S. company for 2.7 billion dollars

Ruling on the El Petacal property of the San Isidro Ejido located in Jalisco in July 2022. Photo: Ministry of Agrarian, Territorial and Urban Development (Sedatu)
Ruling on the El Petacal property of the San Isidro Ejido located in Jalisco in July 2022. Photo: Ministry of Agrarian, Territorial, and Urban Development (Sedatu)

Mexico obtained a decisive ruling in its favor in the international arbitration initiated by the U.S. company Access Business Group LLC, which claimed more than 2.7 billion dollars under NAFTA and USMCA.

The Ministry of Economy reported that the ruling, issued on November 21, 2025, by the International Centre for Settlement of Investment Disputes (ICSID), completely dismissed the claim.

The company argued that, through its subsidiary Nutrilite, S. de R.L. de C.V., in 1992 and 1994 it acquired the land known as “El Petacal,” in Jalisco. It alleged an expropriation after the Ministry of Agrarian, Territorial and Urban Development (SEDATU) granted parcels of the land to an ejido (semi-communal farm land) in July 2022. Based on this, it filed the multibillion-dollar claim.

The arbitral tribunal determined that it lacked jurisdiction, since the challenged measures occurred more than two years after the termination of NAFTA and therefore could not be considered violations of obligations that were no longer in force.

The ruling underscored that “nothing in the text of Annex 14-C indicates that the Contracting States extended the application of the substantive provisions […] beyond the termination of NAFTA.”

In addition, the Tribunal ordered Access Business Group LLC to pay approximately 1.3 million dollars to Mexico for expenses and costs arising from the arbitration.

This resolution represents a significant victory for Mexico and sets an important precedent in investment arbitration, reinforcing the State’s position against unfounded claims.

The defense of Mexico was led by the Directorate General of International Trade Legal Consultancy of the Undersecretariat of Foreign Trade, with the support of the firms Tereposky & DeRose LLP and Pillsbury Winthrop Shaw Pittman LLP. SEDATU provided institutional support during the process.

The ruling remains under review to determine what information must remain classified due to its confidential nature. Once the analysis is completed, it will be published on the ICSID website, along with the documentation related to the case.

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