Mexico – Measures Affecting Telecommunications Services (WT/DS204) Report of the Panel

Summary

INTRODUCTION

On 17 August 2000, the United States requested consultations with Mexico pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (the “DSU”) and Article XXIII of the General Agreement on Trade in Services (the “GATS”). This request concerned Mexico's GATS commitments and obligations on basic and value-added telecommunications services.

The consultations took place on 10 October 2000, but the parties failed to reach a mutually satisfactory resolution. On 10 November 2000, the United States requested the Dispute Settlement Body (the “DSB”) to establish a panel, in accordance with Articles 4 and 6 of the DSU, in order to examine Mexico's measures with respect to trade in basic and value-added telecommunications services. On the same date, the United States requested additional consultations with Mexico, pursuant to Article 4 of the DSU and Article XXIII of the GATS, regarding Mexico's measures affecting trade in telecommunications services. The additional consultations took place on 16 January 2001, but the parties failed again to reach a mutually satisfactory resolution. On 13 February 2002, the United States again requested the DSB to establish a panel, in accordance with Articles 4 and 6 of the DSU in order to examine Mexico's measures affecting telecommunications services.

At its meeting on 17 April 2002, the DSB established a Panel in accordance with Article 6 of the DSU. At that meeting, the parties agreed that the Panel should have standard terms of reference as follows:

“To examine, in the light of the relevant provisions of the covered agreements cited by the United States in document WT/DS204/3, the matter referred to the DSB by the United States in that document, and to make such findings as will assist the DSB in making the recommendations or in giving the rulings provided for in those agreements.”

On 16 August 2002, the United States requested the Director-General to determine the composition of the Panel pursuant to Article 8.7 of the DSU, which provides:

“If there is no agreement on the panelists within 20 days after the date of the establishment of a panel, at the request of either party, the Director-General, in consultation with the Chairman of the DSB and the Chairman of the relevant Council or Committee