US Appeals In WTO Dispute With Mexico

by Leroy Baker, Tax-News.com, New York

26 January 2012

The United States Trade Representative (USTR) has confirmed that it is filing an appeal in the World Trade Organization (WTO) dispute with Mexico challenging the United States’ dolphin-safe labeling measures for tuna products sold in America.

On September 15, 2011, a WTO panel report in this dispute was released, which found that the objectives of the US measures are legitimate; that the measures do not treat Mexico’s tuna products any less favorably than tuna products from the US or other WTO member countries; and that any adverse effects felt by Mexican tuna producers from the US labeling requirements are the result of choices made by Mexico’s own fishing fleet and canners.

However, the WTO panel also found the US measures to be more trade restrictive than necessary to achieve the objectives of the measures. After careful review and consideration of its report, the US has decided to file an appeal.

“Our dolphin-safe labeling measures for tuna products provide information for American consumers as they make food purchasing decisions for their families,” said Andrea Mead, USTR’s Press Secretary. “Our decision to appeal the WTO ruling in this case demonstrates the commitment of the US to our dolphin-safe labeling measures.”

Under the United States dolphin-safe labeling provisions, producers of tuna products – whether foreign or domestic – have the option of labeling tuna products that meet the standards of the US provisions as dolphin safe. One such condition, challenged by Mexico, is that the label cannot be used if dolphins are purposefully chased and encircled in order to catch tuna, as that fishing method is harmful to dolphins. Some Mexican fishing vessels use this method when fishing for tuna.

After, in October 2008, Mexico filed a request for WTO dispute settlement consultations with the US regarding US provisions pertaining to the voluntary dolphin-safe labeling of tuna and tuna products, the US invoked its North American Free Trade Agreement (NAFTA) rights. It requested that Mexico refrain from proceeding in the WTO and move the case to the NAFTA. The US considers that the NAFTA is the appropriate place to litigate such issues, but Mexico has blocked that process for settling the dispute.

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