Trade barrier investigations | Brussels, 3 February 2022

Today, the Commission formally ended its investigation under the EU’s Trade Barriers Regulation (TBR) concerning measures taken by Mexico relating to its exportation of “Tequila”, following the successful resolution of the issue. The complaint had been brought by Brewers of Europe who had argued that Mexico’s refusal to issue export certificates for “Tequila“ was WTO incompatible, causing significant economic damage to an EU company relying on “Tequila“ as an input. In the course of its investigation, the Commission raised with the Mexican authorities concerns about the WTO compatibility of the measure. The measure was also challenged by the affected exporter before domestic courts in Mexico.

In October 2021, the complainant informed the Commission that the affected EU company had found a solution with the Mexican authorities, allowing for the removal of the alleged trade barrier. As result of this development, the Brewers of Europe have withdrawn their TBR complaint.

The positive outcome of the procedure underlines the importance of having effective trade enforcement tools. In this case, the Trade Barriers Regulation provided EU companies with quick access to an examination procedure and opened a path towards dialogue between the Mexican authorities and the affected EU industry, contributing to a solution.

Report to the TBR committee on Mexican measures related to the exportation of “Tequila”

Background

The Trade Barriers Regulation is part of the Commission enforcement efforts in the area of international trade rules. The Trade Barriers Regulation is an instrument available for trade enforcement today, alongside the new complaints mechanism under the Single Entry Point of DG Trade, and the possibility for the Commission to decide on its own to initiate investigations with regard to possible infringements of market access or TSD commitments by third countries. Please consult “Working Approaches to Implementation and Enforcement Work” on the various tools available to stakeholders.

The Trade Barriers Regulation is a legal instrument that gives EU companies, industries, associations and Member States the right to lodge a complaint with the Commission about trade barriers in third countries. If the complaint fulfils the criteria for admission, the Commission then examines the case to determine whether there is evidence of violations of international trade rules resulting in adverse trade effects or injury, and whether it is in the EU’s interest to act. If the procedure concludes that action is necessary to ensure the respect of international trade rules and to remove the injury caused, appropriate measures can be taken, which may include the initiation of dispute settlement proceedings. So far 26 TBR examination procedures have been initiated with regard to trade practices of a wide range of trading partners (e.g. Brazil, Canada, Japan, Turkey).

For more information

Trade barriers investigations