 
  WORLD TRADE  
ORGANIZATION  WT/DS308/1 
G/L/674 18 March 2004 
 
 
(04-1207) 
 Original:   English 
  
 
MEXICO – TAX MEASURES ON SOFT DRINKS 
AND OTHER BEVERAGES 
 
Request for Consultations by the United States
 
 
 
 The following communication, dated 16 Marc h 2004, from the delegation of the United States 
to the delegation of Mexico and to the Chairman of the Dispute Settlement Body, is circulated in 
accordance with Article 4.4 of the DSU.  
_______________ 
 
  My authorities have instructed me to request consultations with the Government of Mexico 
pursuant to Articles 1 and 4 of the Understanding on Rules and Procedures Governing the Settlement 
of Disputes  ("DSU") and Article XXII:1 of the General Agreement on Tariffs and Trade 1994  
("GATT 1994"), regarding Mexico's tax measures on so ft drinks and other beverages that use any 
sweetener other than cane sugar.  The measures include those published in the Diario Oficial  on 
1 January 2002, as well as any amendments thereto or extensions thereof, and any related or 
implementing measures
1 
 
 Mexico's tax measures include a 20 per cent tax on soft drinks and other beverages that use 
any sweetener other than cane suga r ("beverage tax").  Beverages th at use cane sugar are not subject 
to the beverage tax.  In addition, Mexico's  tax measures include a 20 per cent tax on the 
commissioning, mediation, agency, representation, brokerage, consignment a nd distribution of soft 
drinks and other beverages that use any sweetener other than cane sugar ("distribution tax").  The 
beverage tax and distribution tax ha ve severely restricted US exports  to Mexico of beverages and of 
high fructose corn syrup ("HFCS"), a corn-based sw eetener that competes with sugar in many 
applications.   
  The United States believes that these taxes are in consistent with Mexico's national treatment 
obligations under Article III of the GATT 1994.  In particular, they ap pear to be inconsistent with 
GATT 1994 Article III:2, first and second sentences, and GATT 1994 Article III:4. 
 
 We look forward to receiving your reply to this request and to fixing a mutually acceptable 
date for consultations.  
__________ 
  
                                                     
 
1 See Ley del Impuesto Especial sobre Producción y Servicios , Diario Oficial  (1 Jan. 2002); extended 
30 December 2002 and 31 December 2003. 