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WTO NEWS: 2004 NEWS ITEMS

Dispute Settlement Body 1 June 2004

DSB adopts panel report on Mexican measures affecting telecommunications services from United States

The Dispute Settlement Body, on 01 June 2004, adopted the panel report on “Mexico — Measures Affecting Telecommunications Services” (DS204).

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NOTE:
This summary has been prepared by the WTO Secretariat’s Information and Media Relations Division to help public understanding about developments in WTO disputes. It is not a legal interpretation of the issues, and it is not intended as a complete account of the issues. These can be found in the reports themselves and in the minutes of the Dispute Settlement Body’s meetings.

The US welcomed the panel's analysis. However, it strongly disagreed with the panel's discussion on the obligations of GATS Article XVI:2 concluding that “a specific provision in Mexico's GATS schedule allowed Mexico to prohibit the supply of cross-border services using leased capacity in Mexico”. The US also informed the DSB of its agreement with Mexico concerning the steps and the reasonable period of time for compliance.

Mexico stated that, while strongly concerned with some of the panel's findings and recommendations — especially the interpretation of Mexico's commitments under the GATS — it would not appeal, in the light of the agreement reached with the United Stated on actions to comply with the panel's recommendations.

Mexico added that the flaws in some of the panel's reasoning and findings were particularly important in light of the ongoing services negotiations.


 

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The next regular meeting of the DSB will take place on 22 June 2004.