Chile - Taxes on Alcoholic Beverages

On 4 June 1997 and 15 December 1997, the EC requested consultations with Chile in respect of Chile’s Special Sales Tax on spirits, which allegedly imposes a higher tax on imported spirits than on Pisco, a locally brewed spirit. The EC’s second request (WT/DS110), takes issue with the modification to the law on taxation on alcoholic beverages passed by Chile to address the concerns of the EC in WT/DS87. The EC contended that this differential treatment of imported spirits violates Article III:2 of GATT 1994.