MEXICO – DEFINITIVE COUNTERVAILING MEASURES ON OLIVE OIL FROM THE EUROPEAN COMMUNITIES
Document: Request for the Establishment of a Panel by the European Communities
Date: 8 December 2006
Document codes: WT/DS341/2
Complainant: EU
Respondent: Mexico
Third parties: Canada, China, Japan, Norway, U.S.
Dispute stage: Panel
Agreements cited: Art. VI  GATT 1994Art. 1, 11, 12, 13, 14, 15, 16, 22  Subsidies and Countervailing Measures (SCM)Art. 13, 21.1  Agriculture

MEXICO – DEFINITIVE COUNTERVAILING MEASURES ON OLIVE OIL
FROM THE EUROPEAN COMMUNITIES

Request for the Establishment of a Panel by the European Communities

 The following communication, dated 7 Decemb er 2006, from the delegation of the European
Communities to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of
the DSU.

 The European Communities hereby requests the establishment of a panel pursuant to
Articles 4.7 and 6 of the Understanding on Rules and Procedures Governing the Settlement of
Disputes ("DSU") and Article XXIII of the General Agreement on Tariffs and Trade 1994
("GATT 1994") and Articles 4 and 30 of the Agreement on Subsidies and Countervailing Measures
("SCM Agreement") and Article 19 of the Agreement on Agriculture.

 This request concerns Mexico's imposition of definitive countervailing measures on imports
of olive oil originating in the European Communitie s by the "Resolución final de la investigación por
subvención de precios sobre las importaciones de aceite de oliva" published in the Diario Oficial de la
Federación of 1 August 2005.

 The European Communities considers that the in itiation and conduct of the investigations, as
well as the imposition of the definitive counterva iling measures are inconsistent with Mexico's
obligations under inter alia Article VI (in particular VI:6) of the GATT 1994, Articles 1, 11 (in
particular paragraphs 2, 4 and 11), 12 (in particular paragraphs 4 and 8), 13, 14, 15, 16 and 22 of the
SCM Agreement and Articles 13(b)(i) and 21.1 of the Agreement on Agriculture.

 Specifically, this request concerns the imposition of countervailing measures despite:

1. the initiation of an investigation in the absen ce of a determination by the Mexican authorities
that the application was made by or on behalf of the domestic industry, in violation of
Articles 11.4 and 16 of the SCM Agreement;

2. the failure to conclude the investigation within one year, and in no case more than 18 months,
after its initiation, in violation of Article 11.11 of the SCM Agreement;

3. the failure by the Mexican authorities to requi re interested parties to provide non-confidential
summaries of confidential information in sufficient detail to permit a reasonable
understanding of the substance of the informa tion in violation of Article 12.4.1 of the
SCM Agreement;

4. the failure of the Mexican authorities to properl y inform the interested parties and to provide
reasonable and adequate explanation on the exis tence of subsidisation, notably as regards
pass-through of any benefit, in violation of Articles 12.8, 22.3 and 22.5 of the of the
SCM Agreement;

5. the failure to grant the opportunity for consu ltations before the initiation of the investigation
with the aim of clarifying the situation as to matters referred to in paragraph 2 of Article 11 of
the SCM Agreement and arriving at a mutually agreed solution, in violation of Article 13.1 of
the SCM Agreement;

6. the failure to calculate the benefit confe rred on the recipient pursuant to paragraph 1 of
Article 1 of the SCM Agreement and to apply the method used to each particular case in a
transparent way which is adequately explained, in violation of Article 14 of the
SCM Agreement;

7. the failure to correctly define the domestic industry, in violation of Article VI:6 of the
GATT 1994 and Articles 15.4, 15.5 and 16 of the SCM Agreement;

8. the failure to make a determination of in jury based on positive evidence involving an
examination of all relevant economic factors and indices having a bearing on the state of the
industry and to provide reasoned a nd adequate explanation, in viol ation of Article VI:6 of the
GATT 1994 and Articles 15.1 and 15.4 of the SCM Agreement;

9. the failure to examine any known factors ot her than the alleged subsidized imports which
were causing injury to the domestic industry , in violation of Article 15.5 of the
SCM Agreement;

10. the initiation of a countervailing duty inves tigation on imports of an agricultural product
(olive oil) outside the circumstances c ontemplated in Article 13(b)(i) of the Agreement on
Agriculture and in violation of Article 21.1 of the Agreement on Agriculture;

 On 31 March 2006, the European Communities re quested consultations with Mexico on the
above-mentioned with a view to reaching a mutually satisfactory solution of the matter. The request
was circulated in document WT/DS341/1 dated 4 Apr il 2006. The consultations were held on 5 May
2006. Unfortunately, they have not led to a satisfactory resolution of the matter.

 Therefore, the European Communities requests that a panel be established, with standard
terms of reference under Article 7 paragraph 1 of the DSU, to consider the above complaint with a
view to finding that Mexico's measures nullify or im pair the EC's benefits in respect of Mexico's
obligations under the above cited Articles.

 The European Communities asks that this request be placed on the agenda for the meeting of
the Dispute Settlement Body to be held on 19 December.