slaughter of imported breeding cattle in march 2005 mexico stated that bolivia had slaughtered a number of mexican cattle in 2004 on the grounds that mexico was a high-risk country for bse. mexico considered this to be in breach of articles 2.2 2.3 5 6 and annex c of the sps agreement. bse was classified as an exotic illness in mexico as mexico was free of the disease. at the end of 1996 the mexican animal health authorities had implemented an epidemiological surveillance programme for bse based on the oie recommendations. bolivia clarified that the mexican cattle had been slaughtered because they had arrived at bolivias airport without the relevant animal health permit. bolivian health authorities had required the re-exportation or the disposal of the cattle. due to inaction by the mexican authorities the cattle had been slaughtered. mexico concluded that the issue with bolivia had been resolved. in june 2006 mexico recalled that a mexican association fogamex had been invited to show some cattle at a fair in santa cruz bolivia. although the requirements communicated by bolivias animal health authority senasag had been fulfilled and an import permit had been obtained when the cattle arrived in bolivia senasag had seized the animals and ordered that they be returned to mexico. however since foot and mouth disease exists in bolivia while it does not exist in mexico it was not possible to return the animals to mexico. after weeks of negotiations and after the bolivian authorities had revoked the import permit although the cattle had already arrived bolivia decided to slaughter the cattle. months later in the context of a lawsuit filed by fogamex against senasag the bolivian supreme court in santa cruz found that senasag had withheld the import permits without legal basis and ordered senasag to cover the damages. formal consultations held in la paz bolivia in 2005 had not led to an agreement. since then bilateral efforts had continued to try to obtain an official and public apology from the bolivian government and payment for damages caused. bolivia indicated that in the absence of oie guidance the competent bolivian authorities had followed national and andean community sanitary requirements which required a risk assessment before an import permit was issued. the animal health authorities received insufficient documentation to carry out a risk assessment only two days before the cattle arrived. according to the andean regulations the cattle thus had to be slaughtered or re-exported. after granting a reasonable period to allow the interested parties to organize the re-exportation of the cattle which had not been possible the bolivian authorities had slaughtered the cattle to ensure adequate health protection in bolivia and in the region. bilateral efforts were underway to find a mutually satisfactory solution to mexicos concern about the economic damage suffered by the mexican exporter. in february 2007 mexico recalled that although bolivia had issued permits for the entry of the mexican breeding cattle for participation in a trade fair upon their arrival bolivia had refused entry and ordered that the cattle to be sent back to mexico. this was not possible because fmd existed in bolivia but not in mexico. bolivia had falsely claimed that mexico was a high risk source of bse and had slaughtered the cattle. although the supreme court of santa cruz in bolivia had ordered payment of reparations to mexico this had not yet occurred. bolivia indicated that when the 25 head of cattle had arrived in bolivia his authorities realized that the procedures for this type of importation had not been properly applied g sps gen 768 . before such importation could be permitted bolivia needed to complete a risk assessment for bse but this was not possible as not enough information had been provided by mexico nor was there sufficient time to complete the analysis. bolivia had proposed returning the cattle to mexico as they