Mexico Chums Up with Argentina following Auto Deal, Drops WTO Case

Renegotiation of Argentina-Mexico auto trade pact leads to withdrawal of WTO panel request

Ahead of Monday’s meeting of the WTO Dispute Settlement Body (DSB), Mexico asked to drop from the DSB agenda the panel request it announced in late November in a case challenging Argentina’s import policies. The decision came after the two countries finalised an auto trade deal, signalling an end to their ongoing disagreement over Mexico’s renegotiation earlier this year of its version of a Mexico-Mercosur auto accord with Brazil.

The 2002 automotive trade pact, also known as ACE-55, was suspended by Buenos Aires in June after the Mexican government renegotiated its version of the same accord with Brasilia. According to Argentina, the process was a breach of prescribed procedures involving the Mexico-Mercosur pact. At the time, Mexico had refused to enter into a similar renegotiation with Argentina, prompting Buenos Aires’ decision to withdraw from the deal.

The WTO case, brought by Mexico in August (DS446), is similar to challenges also tabled by the EU, US, and Japan to various Argentine import controls. These measures, the complainants argue, unfairly discriminate between imported and domestic goods.