The United Mexican States appealed a decision dismissing its application to set aside a NAFTA Chapter 11 arbitration award.
The arbitration tribunal had found that Mexico breached NAFTA by denying tax rebates to an American-owned company while granting them to domestic companies in similar circumstances.
Mexico argued the tribunal erred by drawing adverse inferences from its refusal to disclose confidential taxpayer information and that the damages award violated public policy.
The Court of Appeal dismissed the appeal, holding that the tribunal's decision was entitled to a high degree of deference, the procedure was not contrary to the parties' agreement, and the damages award did not offend fundamental principles of justice and fairness.
