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Mexico to Seek Trade Sanctions on U.S. Exports for New Dolphin-Safe Tuna Rule

Mexico could hit U.S. exports with trade sanctions in retaliation for new U.S. dolphin-safe tuna labeling regulations, said the Mexican Ministry of Economy in a press release. “Mexico will challenge before the [World Trade Organization] that the United States has failed to comply with its WTO obligations,” the Ministry of Economy said. “Once the U.S. violation is confirmed by the WTO, Mexico will be in a position to impose trade sanctions against the United States, for which it will consider suspending benefits across a variety of sectors.”

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The dolphin-safe tuna final rule, issued July 9 by the U.S. National Oceanic and Atmospheric Administration (see 12051633), fails to comply with a May 2012 WTO ruling that found the U.S. dolphin-safe labeling regulations in place at the time discriminated against Mexican tuna, the Ministry of Economy said. The new regulation provides for two different policy regimes, it said: “(i) a highly effective one in the area in which Mexico fishes (Eastern Tropical Pacific Ocean) with internationally agreed upon measures to protect dolphins and (ii) a lax and unguarded one unilaterally established for other areas where U.S. and other fleets fish and where there continues to be a high dolphin mortality rate.”

The Mexican government is currently in talks with its tuna industry to measure the economic impact the new U.S. dolphin-safe tuna rule will have, said the Ministry of Economy. Once it goes before the WTO and gets permission to retaliate, “the suspension of trade benefits will continue until the United States properly implements the WTO decision,” it said.

Dolphin Safe Rule Brings U.S. Into Compliance, Says USTR

According to the U.S. Trade Representative, NOAA’s July 9 dolphin-safe tuna labeling rule brings the U.S. into full compliance with the WTO decision. “I am pleased to announce the United States has complied with the WTO’s findings in a way that enhances, and does not weaken, our ‘dolphin safe’ labeling program,” said USTR Michael Froman July 12 (here). The amendments in the rule “are even-handed and will contribute further to the protection of dolphins regardless of where they swim, bringing the dolphin-safe labeling requirements into compliance with U.S. WTO obligations,” said the USTR release.