Metalclad

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Metalclad is an American landfill management firm that started a NAFTA controversy in Mexico's poor city of Guadalcazar.

Metalclad bought a landfill site from a Mexican company Coterin in 1993. Coterin had wanted to develop a hazardous waste landfill on the site but were unable to secure the necessary permits from the local government. Metalclad were able to obtain permits from the Mexican federal government, but were not issued permits from local governments who opposed the landfill. The mayor of the city was opposed to the landfill because of the amount of toxic waste in it and the threat to the local water supply.

Metalclad proceeded without local permits. Over 200,000 tons of toxic material were dumped into the landfill by both American and Canadian companies. There was a huge string of opposition by locals. They complained that they were getting sick, developing aggressive diseases, and that their water was polluted. The main water well was about 60 yards from the stream flowing through the location where Metalclad was dumping its material. In 1997, Metalclad sued the Mexican Government for damages under Chapter 11 of NAFTA for $90 million. This award was later reduced to $15.6 million.

Metalclad claims that its promises to clean up the site were conditional on being allowed to continue to develop the landfill in that location.