USTR Requests Comments on WTO Dispute Over Mexico's Tax Measures on Beverages and Syrups that Use Certain Sweeteners
The Office of the U.S. Trade Representative (USTR) has issued a notice stating that the U.S. has requested the establishment of a World Trade Organization (WTO) dispute settlement panel (DSP) regarding Mexico's tax measures on soft drinks and other beverages as well as on syrups, concentrates, powders, essences or extracts that can be diluted to produce such products (beverages and syrups) that use any sweetener other than cane sugar.
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The USTR is requesting written comments by July 30, 2004 on this WTO dispute.
U.S. Alleges Mexico's Beverage and Syrup Tax Measures are WTO Inconsistent
According to the USTR, Mexico's tax measures impose a 20% tax on beverages and syrups that use sweeteners other than cane sugar, a 20% tax on services related to the transfer of such beverages and syrups, etc.
USTR considers Mexico's tax measures discriminatory against imported sweeteners other than cane sugar (including high-fructose corn syrup (HFCS)), and imported beverages and syrups made with such sweeteners, because Mexico's tax measures do not apply to cane sugar, or beverages and syrups made solely with cane sugar.
USTR believes the tax measures are inconsistent with Mexico's national treatment obligations under certain articles of the General Agreement on Tariffs and Trade 1994 (GATT 1994).
(See ITT's Online Archives or 03/23/04 news, 04032325, for BP summary of the U.S.' filing of a WTO case against Mexico on this matter, which began a 60-day consultation period.)
- comments should be submitted on or before July 30, 2004 to be assured of timely consideration; however, comments will be accepted during the course of proceedings.
USTR contact - Amy Karpel (202) 395-5804
USTR notice (D/N WTO/DS-308, FR Pub 06/23/04) available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-14239.pdf