The Claimant, Methanex Corporation (“Methanex“), initiated this arbitration against the Respondent, the United States of America (the “USA“), on 3rd December 1999 under Chapter 11 of the North American Free Trade Agreement (“NAFTA“), as a Canadian investor. As formulated in its Original Statement of Claim of 3rd December 1999, Methanex claimed compensation from the USA in the amount of approximately US$ 970 million (together with interest and costs), resulting from losses caused by the State of California's ban on the sale and use of the gasoline additive known as ‘ ‘MTBE'’ (methyl tertiary-butyl ether) which was then intended to become legally effective on 31st December 2002. MTBE is a synthetic, volatile, colourless and organic ether, with a turpentine-like taste and odour. Methanex was (and remains) the world's largest producer of methanol, a feedstock for MTBE. It has never produced or sold MTBE.
