Luis de la Calle, Mexico's Deputy Secretary of Commerce, sayshis government will submit its challenge to the ruling to anotherinternational tribunal in Vancouver by the end of November. Lastweek's ruling was issued by a panel in Washington, D.C. that wascomprised of one expert from the US, a second from Mexico and athird from England.

Legal experts say last week's ruling is the first legal victoryfavoring a US investor under the 1994 North American Free TradeAgreement. If the ruling stands, it could force the Mexicangovernment to do a better job of sticking to written contracts andinternational laws, which at times have been broken by localofficials in Mexico.

The case involves Metalclad Corp., a Newport Beach, CA-basedfirm that provides construction services and specializes inhandling toxic material. The trouble started brewing around 1993,when Metalclad began building a $20-million landfill for hazardouswaste about 250 miles northwest of Mexico City.