The United Mexican States (“Mexico”) appealed the decision of the Ontario Superior Court of Justice upholding an award by a NAFTA arbitration tribunal which had found that Mexico had engaged in discriminatory conduct by granting tax rebates to domestic companies that were denied to a company engaged in a similar business owned by a U.S. citizen (“Karpa”). The Ontario Court of Appeal dismissed the appeal and held that the arbitration tribunal was entitled to a high degree of deference and Mexico had not shown any basis upon which to interfere with the arbitration award.
Administrative law – Arbitration and award – Decisions of administrative tribunals – Arbitration Board – NAFTA – Tax rebates – Companies – Less favourable treatment – Discrimination – Judicial review – Procedural requirements and fairness – Disclosure United Mexican States v. Karpa, [2005] O.J. No. 16, Ontario Court of Appeal, January 11, 2005, D.H. Doherty, R.P. Armstrong ...