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WTO NEWS: 2004 NEWS ITEMS

Dispute Settlement Body 6 July 2004

DSB establishes a panel on Mexican tax measures on soft drinks and other beverages

The Dispute Settlement Body, on 6 July 2004, established a panel to examine the Mexican tax measures on soft drinks and other beverages (DS308).

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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.

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DS308: Mexico — Tax measures on soft drinks and other beverages

For the second time, the US requested the establishment of a panel regarding the Mexico's tax measures on soft drinks and other beverages. The US claimed that these tax measures discriminate against beverages and syrups made with any sweetener other than cane sugar. The US said that although Mexico suggested that it was premature to establish a panel because the industry was considering the matters, the negotiations have been ongoing for nearly a year without any outcome.

Mexico responded that it disagreed with the view that the Mexico's tax measures are WTO inconsistent but it can not go against the US' second request for panel establishment.

The DSB agreed to establish a panel and the following members requested to be third parties: European Communities, Canada, China, Japan and Pakistan.

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The next regular DSB will meet on 20 July 2004.