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Image header Agence Europe
Europe Daily Bulletin No. 8743
Contents Publication in full By article 14 / 36
GENERAL NEWS / (eu) eu/wto

EU joins WTO panel on Mexican soft drink tax

Brussels, 07/07/2004 (Agence Europe) - The European Union (together with China, Canada, Japan and Pakistan) is to be a third party on a panel which was set upon Tuesday by the dispute settlement body of the World Trade Organisation (WTO), to look into tax measures imposed by Mexico on soft drinks and other beverages. The panel had been requested by the United States, which felt that the measures were incompatible with Mexico's commitments and obligations under the 1994 GATT agreement. The Mexican measures apply to soft drinks and other drinks such as syrups, concentrates, powders, essences or extracts which can be diluted to make these products, and which contain sweeteners other than cane sugar. Mexico imposes an import tax of 20% on all these products. Furthermore, the country also levies a 20% tax on services related to the transport of these drinks and syrups, including trustee, intermediary, agency, representation, brokerage, transport and distribution services for these products. Drinks sweetened solely with cane sugar, and services related to their transportation, are not subject to these taxes Last March, the US asked for consultations to be opened, but these failed to resolve the dispute.

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