Notification of an Agreement
The following communications, dated 1 June 2004, from the
Permanent Missions of Mexico and the United States, are circulated at their
request.
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June 1, 2004
H.E. Ms. Linnet F. Deily
Ambassador
Permanent Representative
Permanent Mission of the United States to
The World Trade Organization
Route de Pregny 11
1292 Chambesy
Switzerland
Dear Ambassador Deily:
Over the past several days, delegations of the United States
and Mexico (the "Parties") have been discussing a mutually agreed solution of
the dispute Mexico � Measures Affecting Telecommunications Services
(WT/DS204/R). Notwithstanding the fact that Mexico does not share the
interpretation of Mexico�s World Trade Organization (the "WTO") commitments as
set forth in the panel findings, Mexico will not exercise its right to appeal
under Article 16 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes (the "DSU") in light of the following understanding
reached by the Parties to comply with the recommendations of the panel report:
1. The Parties agree that thirteen (13) months
constitutes a reasonable period of time to comply with the recommendations
of the Report, as set forth in paragraphs 2 to 6 of this letter.
2. Within two (2) months of adoption of the Report,
Mexico shall have in force revised International Long Distance Rules (the
"ILD Rules"). Mexico shall completely eliminate those aspects of the
current ILD Rules that implement the "uniform settlement rate" system, the
"proportional return" system, and the requirement that the carrier with
the greatest proportion of outgoing traffic to a country negotiate the
settlement rate on behalf of all Mexican carriers for that country. Thus,
the new ILD Rules shall allow the competitive commercial negotiation of
international settlement rates.
3. Within thirteen (13) months of adoption of the
report, Mexico shall have in force regulations (Reglamentos)
authorizing the issuance of permits (permisos) for the resale of
international long distance public switched telecommunications services.
Such Reglamentos will regulate commercial agencies (comercializadoras)
established in Mexico and permit them to purchase and resell these
telecommunications services through the use of capacity of
concessionaires, within the limits established in Articles 52 and 61 of
Mexico�s Federal Telecommunications Law.
4. The Parties anticipate that the competitive
commercial negotiation of international settlement rates resulting from
the revisions of the ILD Rules described in paragraph 2 will result in
reasonable and cost-oriented rates.
5. The United States recognizes that Mexico will
continue to prohibit International Simple Resale (ISR).
6. Once Mexico has complied with the obligations set
out in paragraphs 2 and 3, and provided that international settlement
rates offered do not increase above the rates established by commercial
negotiations concluded in May 2004
between United States carriers and the Mexican carrier authorized under
the current ILD Rules, the Parties will file a
notice with the Dispute Settlement Body stating that a mutually agreed
solution to this dispute has been achieved. Provided that Mexico has
complied with this agreement, the United States shall not seek recourse to
Article 21.5 of the DSU, concerning any finding or recommendation of the
panel report.
The Parties shall consult periodically regarding the
implementation of this agreement.
I have the honor to propose that this letter done in the
English and Spanish languages, both texts being equally authentic, and your
letter of confirmation in reply shall constitute an agreement between our two
Governments, effective as of the date of the letter in reply.
Sincerely,
(Signed) Eduardo P�rez Motta,
Ambassador
June 1, 2004
H.E. Mr. Eduardo P�rez Motta
Ambassador
Permanent Representative
Permanent Mission of Mexico to
the World Trade Organization
Avenue du Bud� 16 (7 piso)
1202 Geneva
Switzerland
Dear Ambassador P�rez Motta:
I am pleased to receive your letter of today�s date, which
reads as follows:
"Over the past several days, delegations of the United
States and Mexico (the "Parties") have been discussing a mutually agreed
solution of the dispute Mexico � Measures Affecting Telecommunications
Services (WT/DS204/R). Notwithstanding the fact that Mexico does not share
the interpretation of Mexico�s World Trade Organization (the "WTO")
commitments as set forth in the panel findings, Mexico will not exercise its
right to appeal under Article 16 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes (the "DSU") in light of the following
understanding reached by the Parties to comply with the recommendations of the
panel report:
1. The Parties agree that thirteen (13) months
constitutes a reasonable period of time to comply with the recommendations
of the Report, as set forth in paragraphs 2 to 6 of this letter.
2. Within two (2) months of adoption of the Report,
Mexico shall have in force revised International Long Distance Rules (the
"ILD Rules"). Mexico shall completely eliminate those aspects of the
current ILD Rules that implement the "uniform settlement rate" system, the
"proportional return" system, and the requirement that the carrier with
the greatest proportion of outgoing traffic to a country negotiate the
settlement rate on behalf of all Mexican carriers for that country. Thus,
the new ILD Rules shall allow the competitive commercial negotiation of
international settlement rates.
3. Within thirteen (13) months of adoption of the
report, Mexico shall have in force regulations (Reglamentos)
authorizing the issuance of permits (permisos) for the resale of
international long distance public switched telecommunications services.
Such Reglamentos will regulate commercial agencies (comercializadoras)
established in Mexico and permit them to purchase and resell these
telecommunications services through the use of capacity of
concessionaires, within the limits established in Articles 52 and 61 of
Mexico�s Federal Telecommunications Law.
4. The Parties anticipate that the competitive
commercial negotiation of international settlement rates resulting from
the revisions of the ILD Rules described in paragraph 2 will result in
reasonable and cost-oriented rates.
5. The United States recognizes that Mexico will
continue to prohibit International Simple Resale (ISR).
6. Once Mexico has complied with the obligations set
out in paragraphs 2 and 3, and provided that international settlement
rates offered do not increase above the rates established by commercial
negotiations concluded in May 2004
between United States carriers and the Mexican carrier authorized under
the current ILD Rules, the Parties will file a
notice with the Dispute Settlement Body stating that a mutually agreed
solution to this dispute has been achieved. Provided that Mexico has
complied with this agreement, the United States shall not seek recourse to
Article 21.5 of the DSU, concerning any finding or recommendation of the
panel report.
The Parties shall consult periodically regarding the
implementation of this agreement.
I have the honor to propose that this letter done in the
English and Spanish languages, both texts being equally authentic, and your
letter of confirmation in reply shall constitute an agreement between our two
Governments, effective as of the date of the letter in reply.""
I have the honor to confirm that the understanding referred
to in your letter done in the English and Spanish languages, both texts being
equally authentic, is shared by my Government, and that your letter and this
letter in reply shall constitute an agreement between our two respective
Governments, to enter into force on the date of this letter.
Sincerely,
(Signed) Linnet F. Deily
Ambassador
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