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U.S. Requests NAFTA Panel on Mexico’s Decision to Keep Tuna Dispute at WTO

The Office of the U.S. Trade Representative announces that the U.S. has asked the North American Free Trade Agreement Free Trade Commission to establish a dispute settlement panel regarding Mexico’s decision not to move its “dolphin safe” labeling dispute from the World Trade Organization to NAFTA, as requested by the U.S. and as required by NAFTA.

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(The U.S. dolphin safe labeling provisions at issue in the WTO dispute establish conditions under which tuna products may voluntarily be labeled “dolphin safe” and provide that tuna sellers may not label their products as “dolphin safe” if the tuna is caught by intentionally encircling (“setting on”) dolphins with purse seine nets.)

Responding Party Can Keep Standards Disputes at NAFTA and Out of WTO

USTR states that Mexico’s challenge to the U.S. dolphin safe labeling provisions meets the criteria in the NAFTA choice of forum provision, which state that certain disputes that pertain to matters arising under both the WTO Agreement and the standards-related provisions of the NAFTA, and which concern human, animal or plant life or health or the environment and raise factual issues concerning the environment or conservation, shall be heard -- at the responding party’s option -- solely under the NAFTA’s dispute settlement procedures.

NAFTA rules provide that once a responding party invokes the choice of forum provision, the complaining party must withdraw from the WTO proceedings and may pursue the dispute solely under the NAFTA.

(See ITT’s Online Archives or 11/06/09 news, 09110625, for BP summary of the U.S.’ request for NAFTA dispute settlement consultations.

See ITT’s Online Archives or 04/23/09 news, 09042335, for BP summary of the USTR’s request for comments on Mexico’s WTO DSP request.)

(Press release dated 09/24/10)