Green Signal to Mexico to Retaliate for US Failure to Implement Tuna Decision at WTO

A WTO arbitrator has ruled that Mexico can request to “suspend concessions or other obligations” worth US$163.23 million per year against the United States, in the latest development in their high-profile trade dispute (DS381) on “dolphin-safe” tuna labelling.

The arbitration decision, released on Tuesday 25 April, means that Mexico will be able to ask the WTO’s Dispute Settlement Body (DSB) for authorisation to move forward with these countermeasures, which are expected to affect a select list of US goods imports. The arbitrator’s findings cannot be appealed.

Despite the approval of US$163.23 million, Mexico had actually asked that the arbitrator endorse countermeasures at nearly three times that level, at US$472.3 million per year. The US, for its part, had pushed for the arbitrator to approve a much lower figure, at US$21.9 million annually.

The US and Mexico have sparred for years over the labelling policy, which has drawn the attention of trade lawyers, environmental groups, and consumer labelling advocates alike. The WTO’s highest court, known as the Appellate Body, ruled in 2012 that the original US measure in place was in violation of global trade rules, on the grounds that it discriminated unfairly against Mexican tuna.

The US issued changes to the labelling measure the following year. These then faced another challenge by Mexico, which argued that these updates were not enough to resolve the legal issues involved.