By Nate Raymond
NEW YORK Feb 21 Cargill Inc has
reached a settlement with Mexico in a dispute that resulted in a
$77 million arbitration award for the U.S. agribusiness company,
according to court documents filed on Thursday.
A North American Free Trade Agreement arbitration tribunal
awarded Cargill the sum in 2009 over trade barriers the company
said Mexico erected against high-fructose corn syrup from 2002
The terms of the settlement, reached on Feb. 5, were not
disclosed. The settlement was detailed in papers filed in U.S.
District Court in New York, where Cargill had filed a lawsuit to
enforce the arbitration award.
A spokeswoman for Cargill welcomed the resolution of the
"We are dedicated to compliance with NAFTA and believe NAFTA
is a positive force for trade relations among the United States,
Canada and Mexico," she said, adding that the company will
continue to invest in its Mexican operations.
A representative for Mexico's Economy Ministry did not
respond to a request for comment.
Cargill filed its claims against Mexico in 2005 under
Chapter 11 of NAFTA, which allows companies to sue countries
that are members of the treaty for actions that affect their
In 2009, the tribunal awarded Cargill $77.3 million plus
interest and costs. In May 2012, the Supreme Court of Canada,
the country where the original NAFTA panel was held, let the
Cargill in November filed the federal lawsuit in New York to
enforce the award. It said that, with interest, the award was
now worth $94.6 million.
The case is Cargill, Incorporated v. United Mexican States,
U.S. District Court, Southern District of New York, 12-08225.