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Article: SUPREME COURT GRANTS REQUEST TO HALT FEDERAL GOVERNMENT'S PLANNED BUDGET REDUCTION FOR SAN LUIS POTOSI STATE.
- Article from:
- SourceMex Economic News & Analysis on Mexico
- Article date:
- May 22, 2002
CopyrightCOPYRIGHT 2002 Latin American Data Base/Latin American Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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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 the company's rights were violated when the municipality of Guadalcazar and the state government ...