The disagreement escalated into a legal battle, with both parties engaging in arbitration proceedings to resolve their differences. The arbitration panel was tasked with interpreting the terms of the contract and determining whether Dow Chemical's proposed changes were justified under the circumstances.

After careful deliberation and examination of the contractual language, the arbitration panel rendered a decision in favor of FCC. They concluded that Dow Chemical's attempt to renegotiate the contract was indeed a breach of their agreement, as the contract did not contain provisions allowing for unilateral modification by either party.

The ruling in Dow Chemical v. Fomento underscored the importance of honoring contractual commitments in international trade relationships. It served as a reminder to companies engaging in cross-border commerce that contracts are legally binding documents that should be approached with diligence and integrity.

Furthermore, the case highlighted the significance of clear and unambiguous contract drafting to avoid misunderstandings and disputes down the line. It emphasized the need for parties to anticipate and address potential contingencies in their agreements to mitigate the risk of future conflicts.

Ultimately, Dow Chemical v. Fomento stands as a testament to the complexities and challenges inherent in international business dealings. It underscores the critical role of legal frameworks and dispute resolution mechanisms in facilitating commerce across borders while upholding the principles of fairness and contractual certainty.

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