International Tribunal Rejects $2.7 Billion Claim Against Mexico

An international arbitration tribunal dismissed a $2.7 billion claim against Mexico by Access Business Group for lack of jurisdiction. The claim involved alleged expropriation of land acquired by Nutrilite in Jalisco in the 1990s. Tribunal ordered Access to pay $1.3 million in arbitration costs.

An international arbitration tribunal has ruled against Access Business Group's $2.7 billion claim against Mexico, citing a lack of jurisdiction. The decision, announced by Mexico’s Ministry of Economy, indicates that the tribunal concluded the challenged measures happened more than two years after the termination of NAFTA, rendering the claims invalid.

Access Business accused Mexico of expropriating land initially acquired by its subsidiary Nutrilite in 1992 and 1994, which, according to the company, was transferred by Mexico’s agrarian ministry to an ejido in July 2022. The tribunal dismissed the case in its entirety.

The case was filed under NAFTA and the USMCA with the International Centre for Settlement of Investment Disputes (ICSID), a World Bank institution. The tribunal’s dismissal exempts Mexico from the multi-billion-dollar claim and orders Access to pay approximately $1.3 million in arbitration costs, with the award currently under review for confidential information prior to its publication.