MEXICO has notified the WTO Secretariat of a request for consultations with China concerning several measures allegedly taken by China to support the production and exports of clothing and textile products. It said it had requested consultations because China appears to maintain a wide variety of measures that support producers and exporters of apparel and textile products, both directly and indirectly. It added that these measures appear to involve both prohibited and actionable subsidies that are inconsistent with China’s obligations under the Subsidies and Countervailing Measures Agreement, GATT 1994, the Agreement on Agriculture, and China’s Accession Protocol.

What is a request for consultations?

The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.