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Methanex vs US

Facts:
Methanex sued the United States government because of the law in California that bans methanol as
one of the components of gas. Methanex is one of the largest supplier of methanol thus the said law
was inflicting damage on the future profits of Methanex. California banned the said substance because it
merges easily in water, moves rapidly upon it and cannot be removed easily. Methanex argued that
California had these problems even before, the complainant further stated that the government is doing
a restrictive measure rather than having alternate solutions for its problems.
One of the issues that was put forward in this case was that NAFTAs Chapter 11 secretive arbitral
proceedings. Wherein some of its clauses are subjected to several different interpretations thus not
making the intention of the United States as a party in the NAFTA known or clear. The articles in
question 1101, 1102, 1105 and 2101 of the NAFTA all pertain to the jurisdiction of US to the materials
used by foreign corporations that have branches within the United States territory.
Ruling on the said issue:
Methanex sought the disclosure from the USA of the negotiating history of Articles 1101, 1102, 1105
and 2101 of NAFTA in order to resolve the issues of their interpretation. The Arbitral Tribunal of NAFTA
ruled that the text of the treaty is deemed to be the authentic expression of the intentions of the parties
and its elucidation rather than searching of wide-ranging definitions for the supposed intentions of the
parties is the proper object of interpretation

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