Mexico – Tax Measures on Soft Drinks and Other Beverages (DS308)

In the Mexico-Soft Drinks case, Mexico claimed that it was entitled to impose a measure inconsistent with the GATT's national-treatment provisions in response to the refusal of the United States to cooperate in another dispute related to another measure under another agreement. Mexico did not s...

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Bibliographic Details
Published in:World trade review 2009-01, Vol.8 (1), p.25-30
Main Author: ROESSLER, FRIEDER
Format: Article
Language:English
Subjects:
Agricultural commodities
Beverages
Exports
GATT
International disputes
International law
Jurisdiction
North American Free Trade Agreement
Provisions
Soft drinks
Studies
Trade policy
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Summary:In the Mexico-Soft Drinks case, Mexico claimed that it was entitled to impose a measure inconsistent with the GATT's national-treatment provisions in response to the refusal of the United States to cooperate in another dispute related to another measure under another agreement. Mexico did not suspend the application of obligations under the NAFTA to products originating in the United States (for instance, by denying preferential tariff treatment of US products). It responded to the United States' failure to cooperate by suspending the application of an obligation assumed towards all Members of the WTO to imported products of all origins. There is no provision of WTO law or any principle of international law that confers the right to suspend the application of obligations assumed under the WTO Agreement towards all WTO Members if one of them fails to observe another agreement. In their uncontroversial rulings, the Panel and the Appellate Body confirmed this obvious fact. The two disputes between the United States and Mexico provide a vivid demonstration of the central weaknesses of the NAFTA and WTO dispute settlement procedures.
ISSN:1474-7456
1475-3138
DOI:10.1017/S1474745608004163