This dispute arises out of the activities of the Claimant, Metalclad Corporation(hereinafter “Metalclad“), in the Mexican Municipality of Guadalcazar (hereinafter “Guadalcazar“),located in the Mexican State of San Luis Potosi (hereinafter “SLP“).Metalclad alleges that Respondent, the United Mexican States (hereinafter “Mexico“), through its local governments of SLP and Guadalcazar, interfered with its development and operation of a hazardous waste landfill. Metalclad claims that this interference is a violation of the Chapter Eleven investment provisions of the North American Free Trade Agreement (hereinafter “NAFTA“). In particular, Metalclad alleges violations of (i) NAFTA, Article 1105, which required each Party to NAFTA to “ accord to investments of investors of another Party treatment in accordance with international law, including fair and equitable treatment and full protection and security“ and (ii) NAFTA, Article 1110, which provides that “no Party to NAFTA may directly or indirectly nationalize or expropriate an investment of an investor of another Party in its territory or take a measure tantamount to nationalization or expropriation of such an investment ('expropriation’), except: (a) for a public purpose; (b) on a non-discriminatory basis;(c) in accordance with due process of law and Article 1105(1); and (d) on payment of compensation in accordance with paragraphs 2 through 6”.Mexico denies these allegations.

In order to comply with its responsibilities for Hungarians living abroad and to promote the preservation and development of their manifold relations with Hungary prescribed in paragraph (3) of Article 6 of the Constitution of the Republic of Hungary;

Considering the European integration endeavours of the Republic of Hungary and in-keeping with the basic principles espoused by international organisations, and in particular by the Council of Europe and by the European Union, regarding the respect of human rights and the protection of minority rights;

Having regard to the generally recognised rules of international law, as well as to the obligations of the Republic of Hungary assumed under international law