WTO compliance panel hands U.S. win in tuna-dolphin dispute; Mexico to appeal

The U.S. and Mexico have been locked in a dispute over how tuna is fished in Mexico. The U.S. claims that Mexican fishermen allow dolphins to be netted and killed when they fish for tuna. Therefore, U.S. officials say that Mexican tuna fish can't be labeled "dolphin safe." Mexican leaders deny that the country's fishing industry isn't in compliance with rules imposed by the World Trade Organization and they demand their tuna get the "dolphin-safe" labeling. If it doesn't get that label, several major U.S. supermarkets, like Walmart, won't sell it, even though it can still legally cross the border.In April, the WTO said Mexico had the right to impose tariffs on up to $163 million of U.S. exports, arguing that the U.S. labeling requirements for "dolphin safe" unfairly discriminated against Mexican tuna.The WTO said $163 million was an amount equal to what Mexico had lost as a result of not having the U.S. label.But in a separate proceeding this week, the WTO said that the U.S. labeling is now in compliance with its standards after a unit of the U.S. Commerce Department tweaked its tuna-labeling laws last year.In other words, the ruling from Thursday means the U.S. labeling doesn't discriminate against Mexican tuna.This week's ruling all but dismisses the retaliation decision in April, though it hasn't been officially thrown out. Mexico actually never decided to impose tariffs on U.S. exports.