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Investor-state arbitration is a system aimed at resolving disputes between foreign investors and host states, also known as Investor-State Dispute Settlement, or ISDS. It is an improved mechanism for resolving legal disputes arising from the assertion of a national sovereign before foreign economic interests; its origin is the colonial era, which in the past led to severe political and armed conflicts between countries. Paradoxically, this system has now extended worldwide, regulating investor-state relationships between advanced economies that have symmetrical power.

Due to Mexico’s position as the recipient of foreign investment, it is important to understand the proceedings that could be used in the event of disputes. The members of our team have solid knowledge of the foundations, principles, and legal and political dynamics that underlie Bilateral Investment Treaties (BITs), the North American Free Trade Agreement (NAFTA) and the newly negotiated US-Mexico-Canada Agreement (USMCA). Likewise, we have vast experience in this type of dispute, which allows us not only to design defensive, preventive and planning strategies, but also to handle proceedings before the International Centre for Settlement of Investment Disputes (ICSID).

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