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Mexico Loses Tuna Trade Battle with US

The World Trade Organisation (WTO) has ruled in favour of the US in the long running trade dispute concerning the marketing of tuna products produced by Mexico.

Sale of tuna products in large scale American super markets such as Walmart, Costco, etc requires them to be labeled as ‘Dolphin Safe’. The US denied the labeling for Mexican products and claimed that the Mexican fishing industry’s general practice involves the use of nets and dolphins are killed along with tuna. Mexican officials countered the claims by stating that their practices were in compliance with the regulations under WTO regime.

However, the WTO did not find the American laws to be discriminatory against Mexico due to which they ruled in favour of the US. This ruling is contrary to the one in April where WTO found USA’s laws to be discriminating against Mexico and awarded it the right to impose tariffs. A subsequent altering of USA’s laws concerning the labeling of tuna products is responsible for the WTO’s latest ruling. Mexico is expected to appeal against the WTO ruling.

This post has been authored by Ravi Shankar from West Bengal National University of Juridical Sciences, Kolkata.

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