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The dispute dates back to 2022, when Indian authorities seized a cargo of one of ETG’s Mozambican competitors, known as Royal Group, on suspicion that it contained genetically modified produce banned in India. Royal accused ETG’s workers of tipping off India and sued the company in Mozambique. ETG denied involvement.
ETG, an agricultural-commodity trader that counts Mitsui & Co. among its biggest shareholders, began arbitration proceedings against Mozambique, claiming more than USD 120 million for what it says is the state’s role in expropriating its assets.
ETG has made many attempts to amicably resolve the matter with the state, but all efforts have failed to date, the company said in a statement recently. The Mozambican attorney general’s office didn’t respond to a request for comment.
The dispute dates back to 2022, when Indian authorities seized a cargo of one of ETG’s Mozambican competitors, known as Royal Group, on suspicion that it contained genetically modified produce banned in India. Royal accused ETG’s workers of tipping off India and sued the company in Mozambique. ETG denied involvement.
After a series of court cases in the southeast African nation, Royal won an order in June allowing it to sell ETG agricultural products it had seized in December. At the time, Royal said this was to avoid the deterioration of the commodities. Much of the seized product was pigeon peas, a legume that Mozambique exports to India.
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ETG, which filed a request for arbitration in London, claimed the Mozambican state-orchestrated and facilitated the unlawful expropriation of its goods. It also said the state had harassed its workers and failed to ensure ETG’s right to export goods without obstruction.
