On December 11, 2012, Mexico stated that it would postpone its application to establish an expert group on China’s Measures Related to the Production and Export of Textile and Apparel Products (DS451). On November 22, Mexico stated that it and China held two days of consultations on the dispute in Geneva, but did not reach a consensus on resolving the differences. Subsequently, Mexico missed the opportunity on December 7 to submit the agenda for the December 17 Dispute Settlement Body General Assembly. Mexico’s next opportunity to apply for the establishment of an expert panel will be at the Dispute Settlement Body Assembly in January 2013.
On October 15, 2012, Mexico resorted to the WTO dispute settlement mechanism regarding China’s subsidy measures related to the production and export of textile and apparel products. It believed that China had reduced income tax, import tax and value-added tax, as well as low interest rates. Subsidies provided for its textiles and clothing in the form of loans, debt forgiveness, land use rights, electricity, cash payment discounts and other measures are inconsistent with WTO rules.
