~snip~

In response to President Saca's refusal to allow a mining permit, Pacific Rim Mining Corp. invoked a provision of the Central American Free Trade Agreement (CAFTA) in 2009 to place the matter in the hands of an international arbitration court. The Canadian-based company presented this case even when Canada is not part of the CAFTA agreement. For legal purposes then, the company declared ad hoc a subsidiary in Nevada as the base for the claim, although before their always declared themselves a Canadian mining company.[17] The company sought $200 million in damages on one of the poorest countries on Central America, a total that has since increased to $300 million, the basis for this is the assertion that government "changed the rules of the game" on the company.[18] The administration of President Funes said later in 2009 it would be willing to negotiate with Pacific Rim Mining Corp. concerning its arbitration claims that the Salvadoran government damaged its interests. Funes' chief of cabinet, Alex Segovia, "acknowledged that the merits of the Pacific Rim case were strong."[7]

When Pacific Rim invoked the CAFTA international arbitration provision in 2009, seeking $100 million in damages, the Salvadoran government called the action a violation of its national sovereignty.[19] Other gold mining companies with operations in Central America, such as Goldcorp, say they may use the Pacific Rim case to adjudicate disputes of their own.[20]