The Ministry of Economy reported that an international court dismissed practically all the claims made by the Singapore company, PACC Offshore Services Holdings Ltd (POSH), against the Mexican State, for which the country will only have to pay 6.7 of the 277 million of dollars claimed by the Asian company.
The international arbitration arose because the Singapore company considered that some acts carried out by Mexican authorities against the company Oceanografía (a corporation that had a commercial relationship with POSH), had affected its investments in Mexico.
The international tribunal dismissed POSH’s claims on the grounds that they lacked merit, considering that the acts of the Mexican authorities were not expropriatory, nor were they unjust and inequitable.
The only ‘but’ was that the court considered that Mexico did commit a fault for temporarily detaining some vessels owned by POSH.
Given this situation, the majority of the court ordered Mexico to pay POSH approximately 6.7 million dollars as compensation, which is equivalent to less than 3 percent of the amount initially claimed.
“The result of this arbitration is the product of four years of hard work that demonstrates the professionalism that distinguishes the officials of the Ministry of Economy,” the agency said in a statement.
The international court was constituted on September 24, 2018 and was made up of Dr. Andrés Rigo Sureda, Prof. Michael Reisman and Prof. Philippe Sands.
Chronologically, on March 20, 2018, the plaintiff company filed its statement of claim with the court, on August 21, 2020, Mexico filed its statement of response to the claim.
Subsequently, on February 12, 2020, the claimant filed its reply brief, and on June 10, 2020, Mexico filed its rejoinder.
This May 11, the final award of the case was announced by the Ministry of Economy.