Brazil and Mexico Signed CFIA
On 26 May, Brazil and Mexico signed a Cooperation and Facilitation Investment Agreement (CFIA). The agreement is the third to be signed by Brazil this year after the ones signed with Angola and Mozambique.
The agreement is largely based on the Brazilian model and presents close similarities to Brazil’s earlier two CFIAs. It contains provisions on non-discrimination, direct expropriation, compensation for losses, transparency, capital transfers, corporate social responsibility, and includes exceptions for prudential measures and national security. The agreement provides for the establishment of a joint committee that will oversee implementation of the agreement and focal points (ombudsmen) that will act as contact points between investors and host states. Dispute prevention and a state-to-state dispute settlement mechanism are put in place.