Bulk Tequila

See Julian Ku's post at opinio juris, noting that the U.S. and Mexico have settled a dispute regarding Mexico's restrictions on exports of tequila in bulk.  This type of restriction could have been addressed under either NAFTA or WTO law.  Under WTO law, it would seem to violate the prohibition on export restraints contained in Art. XI of GATT.  There might also be an argument that the export restriction implicitly subsidies the domestic bottling industry.  However, in the U.S.-Export Restraints case, a WTO panel found that Canadian export restraints on logs could not constitute a subsidy under the Subsidies and Countervailing Measures Agreement, because they do not involve a "financial contribution" by government.