1E9Ct5D

arise from violations of obligations contained therein, particularly those contemplated inSection A of Chapter XI, which establishes the principles according to which foreigninvestment shall be governed under said Agreement.The above-mentioned principles establish guidelines in the following areas: a generalbasis of respect for foreign investment; treatment of the investment, national treatment,most-favored-nation treatment, and minimum standard of treatment; social opening;performance requirements; senior management and boards of directors; and transfersand expropriation and compensation.9.1.3. Procedural rulesThe investor, before submitting a claim to arbitration, must first attempt to resolve thedispute by consultation and negotiation. If these fail, it may submit the claim to arbitration,provided that more than three years have not elapsed since the date on which theenterprise first acquired knowledge of the breach.In addition to the above, in order to submit a claim to arbitration the investor mustwaive its right to initiate or continue any proceeding before a Mexican judicial or administrativecourt.A NAFTA arbitration may be governed by any of the following rules of arbitration: theInternational Center for Settlement of Investment Disputes (ICSID), the Additional FacilityRules of the International Center for Settlement of Investment Disputes and the ArbitrationRules of the United Nations Commission on International Trade Law (UNCITRAL).It should be mentioned that Mexico is not a party to the ICSID Convention, and thereforeit must be subject to the Additional Facility Rules or the UNCITRAL rules, as is thecase with Canada, since to date only the United States of America is party to this conventionand both contending parties must be members to submit disputes to it.In practice, Mexico has submitted to the ICSID Additional Facility Rules, as occurredwith the issuance of the first arbitral decision by a NAFTA Chapter XI tribunal, which wasresolved by a panel of arbitrators consisting of Benjamín R. Civiletti, Claus von Wobeser,and Jan Paulsson, in the case of Robert Azinian v. the United Mexican States.361Dispute Resolution9.1.4. Composition of the arbitration tribunalThe tribunal shall comprise three arbitrators, one appointed by each of the parties and thethird, who shall preside over the tribunal, appointed by agreement of the disputing parties.If either of the parties does not appoint an arbitrator or the parties do not agree on theappointment of the presiding arbitrator of the tribunal, the Secretary General of the ICSIDwill appoint such arbitrators, choosing them from a list maintained by each party.9.1.5. Place of arbitrationThe place where the arbitral proceeding will be held may be agreed to by the disputing