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WTO Panels Find US 'Dolphin-Safe' Tuna Labeling Measure Aligns With WTO Rules

Two World Trade Organization dispute panels on Oct. 26 found that the U.S. has brought its tuna labeling measures in line with WTO obligations, finding that changes to U.S. labeling measures in 2016 either removed discriminatory treatment to Mexican tuna or were justified as exceptions to WTO rules, according to WTO documents. In the cases of the compliance exceptions, the panels ruled they were necessary to conserve exhaustible natural resources. Mexico had agreed during prior WTO proceedings to not assess some $163.2 million in WTO-authorized retaliation per year against the U.S. if any WTO compliance panel found that modified tuna measures adopted by the National Marine Fisheries Service in March 2016 brought the U.S. into compliance with its WTO obligations (see 1704250037).

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The panels found those measures to be “not inconsistent” with WTO Agreement on Technical Barriers to Trade Article 2.1, which requires WTO members to ensure regulations don’t result in products imported from other WTO members being given less favorable treatment than domestic products. The panels also found that, while the 2016 measure is inconsistent with the “most favored nation” and “national treatment” principles under 1994 General Agreement on Tariffs and Trade articles I:1 and III:4, the measure is “nevertheless justified as an exception,” according to a Geneva trade source. The rulings can be appealed through the end of Dec. 25.

“I am pleased that WTO panels have finally agreed with the overwhelming evidence that U.S. dolphin-safe labeling requirements are accurate and fair,” U.S. Trade Representative Robert Lighthizer said in a statement. “The Trump Administration is committed to defending U.S. rights to enforce environmental measures that protect wildlife and facilitate fair trade.” NMFS labeling requirements now prevent Mexican tuna products produced by chasing and capturing dolphins from inaccurate marketing to U.S. consumers as "dolphin-safe" tuna, the Office of the U.S. Trade Representative said.