The U.S. representative made the following statement at the July 6, 2004 meeting of the WTO Dispute Settlement Body.

Item 1. MEXICO - TAX MEASURES ON SOFT DRINKS AND OTHER BEVERAGES

A. REQUEST FOR THE ESTABLISHMENT OF A PANEL BY THE UNITED STATES (WT/DS308/4)

As discussed at the DSB meeting held on June 22nd, the United States is concerned that Mexico’s tax measures on beverages and syrups made with any sweetener other than cane sugar are inconsistent with Mexico’s obligations under the GATT 1994.

We recall that at the June 22nd DSB meeting Mexico suggested that the U.S. request was premature because the industries concerned were engaged in negotiations. Unfortunately, industry negotiations, which have been ongoing for nearly a year on a broad range of issues, have not resolved the matters raised in our panel request.

Therefore, for the reasons discussed at the June 22nd meeting, the United States again requests that the DSB establish a panel pursuant to Article 6 of the DSU, with standard terms of reference, to examine the matters set forth in the U.S. panel request.