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Internet Securities Inc.

WTO Sets Up Special Group to Study Mexico's Tax on Soft Drinks

Strategic Insights

— 1 min read

The World Trade Organization (WTO) held an extraordinary meeting at the request of the United States to study the compatibility of Mexico's Special Tax on Production and Services (IEPS) on soft drinks and other sweetened beverages. The special group will comprise of members from both Mexico and the United States, who will establish a work agenda to present their cases and responses before the group. The report is expected to be issued by the end of 2004 or start of 2005. Mexico's Congress had approved the IEPS on beverages made using sweeteners other than sugar, which led to the US request to the Dispute Settlement Body (DSB) of the WTO.

Key Takeaways:

  • The WTO held an extraordinary meeting at the request of the United States to study Mexico's IEPS on soft drinks and other sweetened beverages.
  • A special group will be formed to study the compatibility of the IEPS, comprising of members from both Mexico and the United States.
  • The special group will establish a work agenda, presenting their cases and responses before the group.
  • Mexico's Congress had approved the IEPS on beverages made using sweeteners other than sugar.
  • The report is expected to be issued by the end of 2004 or start of 2005.
  • Mexico and the United States had been working towards a common solution before the US request to the WTO.
  • The special group may issue a report by the end of 2004 or start of 2005.

Statistics:

  • The IEPS was approved by Mexico's Congress on beverages made using sweeteners other than sugar.
  • The special group will comprise of members from both Mexico and the United States.
  • The report is expected to be issued by the end of 2004 or start of 2005.
  • The Dispute Settlement Body (DSB) of the WTO played a key role in the US request to set up the special group.
  • Mexico and the United States have been working towards a common solution on the IEPS.

Sources:

  • Notimex
  • Corporate Mexico by Internet Securities, Inc. via COMTEX (http://www.comtexnews.com)

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