Loading ...First Majestic Silver (NYSE:AG) (TSX:FR) has initiated an arbitration process against Mexico under the North American Free Trade Agreement (NAFTA) over a dispute involving how the silver producer is taxed in the country.
The Canadian miner said the notice served the Mexican government kicks off a 90-day process for the López Obrador administration to enter into negotiations with the company.
First Majestic argues the tax authority has “exhibited a total disregard for the applicable provisions of three separate double taxation treaties”. It also said the agency had “unlawfully opted to ignore” an advanced pricing agreement, governing the tax on silver sales between 2010-2014 by the miner’s subsidiary Primero Empresa Minera.