U.S. To Appeal WTO Ruling On Mexican Tuna Labelingff

Source: MarketWatch

The U.S. said Friday it would appeal a World Trade Organization decision siding mostly with Mexico in a long-running dispute over ‘dolphin-safe’ labeling for tuna.

The U.S. Trade Representative is challenging a WTO ruling in September that found U.S. tuna labeling requirements are more restrictive than necessary to protect dolphins and inform consumers.

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

Mexico’s Economy Minister Bruno Ferrari has warned that if the U.S. appeals and restrictions on imports of Mexican tuna are upheld, his government would consider imposing trade reprisals. The appeals panel will have up to 90 days to reach a decision.

If restrictions on Mexico’s tuna exports to the U.S. are lifted, the country stands to benefit from an additional $100 million in annual exports, the Mexican government has estimated.

While the WTO in September rejected most of Mexico’s claims--including that the labeling requirements are discriminatory--the decision still represented a big win for the country in a two-decade-old trade battle to end U.S. restrictions on its yellowfin tuna.

Mexico’s tuna is considered ‘dolphin-safe’ by international standards, but the U.S. has especially high standards that have essentially barred imports of Mexican tuna by not permitting that it carry the ‘dolphin-safe’ label. Though an embargo was lifted in 1997, Mexico complained that U.S. requirements that fishing methods avoid hurting dolphins were creating an effective ban. It filed a case with the WTO in 2009.

Mexico produced 131,000 tons of tuna in 2010 and exported only 5,521 tons. It accounts for just 0.8% of U.S. tuna imports.