WT/DS560/R  
 
11 July 2019 
(19-4566) Page: 1/4 
  Original: English  
 
  
MEXICO  — ADDITIONAL DUTIES  ON CERTAIN PRODUCTS   
FROM THE UNITED STAT ES 
REPORT OF THE PANEL  
 
 WT/DS560/R  
 
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   TABLE OF CONTENTS  
1   COMPLAINT BY THE  UNITED STATES  ................................ ..............................  3 
2   PANEL ESTABLISHM ENT AND COMPOSITION  ................................ .................  3 
3   NOTIFICATION OF MUTUALLY AGREED SOLU TION  ................................ .........  4 
 
  WT/DS560/R  
 
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  1  COMPLAINT BY THE UNITED STATES  
1.1.  On 16 July 2018, the United States requested consultations with Mexico  pursuant to Article 4 
of the Understanding on Rules and Procedures Governing the Set tlement of Disputes (DSU) and 
Article XXIII of the General Agreement on Tariffs and Trade 1994 (GATT 1994) with respect to 
Mexico 's imposition of increased duties on certain products originating in the United States 
(additional duties measure).1  
1.2.  The United States alleged that Mexico 's additional duties measure did not impose the increased 
duties on like products originating in the territory of any other WTO Member, and thus appeared to 
be inconsistent with the most -favoured nation obligation in Ar ticle I of the GATT 1994.  
1.3.  According to the United States, the legal instruments through which Mexico impose d the 
additional duties measure include d:  
a. Decree Modifying the Tariff Schedule of the Law of General Import and Export Taxes ; 
b. Decree establishing the General Import Tax Rate applicable during 2003 for goods 
originating in North America; and  
c. Decree establishing Various Sectoral Promotion Programs (enacted  5 June 2018; effective 
5 June 2018);  
d. as well as any amendments, replacement s, related measures or implementing measures.  
1.4.  Consultations were held on 27 September  2018.  
2  PANEL ESTABLISHMENT AND COMPOSITION  
2.1.  On 18 October 2018, the United States requested the establishment of a panel pursuant to 
Article  6 of the DSU with standard term s of reference.2  
2.2.  In its panel request, the United States alleged that Mexico 's additional duties measure applied 
only to products originating in the United States. According to the United States, the additional 
duties measure did not apply to like product s originating in the territory of any other WTO Member, 
and thus appeared to be inconsistent with the most -favoured nation obligation in Article I of the 
GATT 1994.  
2.3.  In that same document, the United States alleged the legal instruments through which Mexic o 
impose d the additional duties measure include d:  
a. Decree Modifying the Tariff Schedule of the Law of General Import and Export Taxes  
b. Decree establishing the General Import Tax Rate applicable during 2003 for goods 
originating in North America; and  
c. Decree  establishing Various Sectoral Promotion Programs (enacted  5 June 2018; effective 
5 June 2018);  
d. as well as any amendments, replacements, related measures or implementing measures.  
2.4.  At its meeting on 21 November 2018, the Dispute Settlement Body (DSB) establ ished a panel 
pursuant to the United States' request in document WT/DS 560/2, in accordance with Article  6 of the 
DSU.3 
2.5.  The Panel's terms of reference are the following:  
                                                
1 WT/DS5 60/1. 
2 WT/DS5 60/2. 
3 WT/DSB/M/421.  WT/DS560/R  
 
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  To examine, in the light of the relevant provisions of the covered agreements cited by 
the parties to the dispute, the matter referred to the DSB by the United States in 
document WT/DS5 60/2 and to make such findings as will assist the DSB in making the 
recommendations or in giving the rulings provided for in those agreements.4 
2.6.  On 7 January 2 019, the United States requested the Director -General to determine the 
composition of the panel, pursuant to Article 8.7 of the DSU . On 25 January 2019, the Director -
General accordingly composed the Panel as follows:  
Chairperson:  Mr William Ehlers  
 
Members :  Mr César Montaño Huerta  
Mr Fabián Villar roel Ríos  
 
2.7.   Brazil, Canada, China, Egypt, the European Union, Guatemala, India, Indonesia, Japan, 
Kazakhstan, New Zealand, Norway, the Russian Federation, Singapore, Switzerland, Chinese Taipei, 
Thailand, Turkey, Ukraine, and the Bolivarian Republic of Venezuela reserved their rights to 
participate in the Panel proceedings as third parties.  
3  NOTIFICATION OF MUTU ALLY AGREED SOLUTION  
3.1.  By a letter dated 2 8 May 2019, pursuant to Article 3.6 of the DSU, the parties notified the DSB 
that they had reached a mutually agreed solution, which was circulated as document WT/DS5 60/4 
on 3 June 2019. Also on 2 8 May 2019, the parties jointly wrote to the Panel advising i t of their 
mutually agreed solution and "recall[ing] that Article 12.7 of the Understanding on Rules and 
Procedures Governing the Settlement of Disputes provides that '[w]here a settlement of the matter 
among the parties to the dispute has been found, the report of the panel shall be confined to a brief 
description of the case and to reporting that a solution has been reached. '" 
3.2.  The Panel takes note of the mutually agreed solution between the parties to the dispute and of 
Article 3.7 of the DSU, which provi des that "[t]he aim of the dispute settlement mechanism is to 
secure a positive solution to a dispute. A solution mutually acceptable to the parties to a dispute and 
consistent with the covered agreements is clearly to be preferred ." 
3.3.  The Panel also takes n ote of Article 12.7 of the DSU, which provides that "[w]here a settlement 
of the matter among the parties to the dispute has been found, the report of the panel shall be 
confined to a brief description of the case and to reporting that a solution has been reached". 
Accordingly, the Panel concludes its work by reporting that a mutually agreed solution to this dispute 
has been reached between the parties . 
 
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4 WT/DS5 60/3.