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ANNEX B

WORLD TRADE
ORGANIZATION

WT/DS308/R
7 October 2005

(05-4310)

  Original: English


 FAX DATED 18 JANUARY 2005 FROM THE CHAIRMAN OF THE PANEL
TO THE PARTIES AND THIRD PARTIES CONCERNING
MEXICO'S REQUEST FOR A PRELIMINARY RULING


As you know, Mexico, as the responding party in these proceedings, has asked the Panel to decline to exercise its jurisdiction in the case in favour of an Arbitral Panel under Chapter Twenty of the North American Free Trade Agreement (NAFTA). Mexico asked that the Panel make this decision through a preliminary ruling.

The Panel has had the opportunity to consider Mexico's request, as well as the arguments on the matter presented by the United States - the complaining party in these proceedings -, and by third parties, including the arguments presented in the responses to questions formulated by the Panel.

After careful consideration of the matter, the Panel has decided to reject Mexico's request. The Panel considers that, under the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), it does not have the discretion, as argued by Mexico, to decide not to exercise its jurisdiction in a case that has been properly brought before it. In any event, even if it had such discretion, the Panel does not consider that the circumstances of this case would justify it declining to exercise its jurisdiction in the present dispute.

The Panel will provide the parties with a fully detailed reasoning for this decision in its report. The decision in no way affects the merits of the substantive claims brought by the United States in the present case, nor the defences to these claims raised by Mexico.


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