UNITED STATES - RESTRICTIONS ON IMPORTS OF TUNA

Panel Report 1991

 

 

FINDINGS

 

The Panel noted that the issues before it arose essentially from the following facts:  the Marine

Mammal Protection Act (MMPA) regulates, inter alia, the harvesting of tuna by United States fishermen

and others who are operating within the jurisdiction of the United States.  The MMPA requires that such

fishermen use certain fishing techniques to reduce the taking of dolphin incidental to the harvesting of

fish.  The United States authorities have licensed fishing of yellowfin tuna by United States vessels in

the ETP on the condition that the domestic fleet not exceed an incidental taking of 20,500 dolphins per

year in the ETP.

 

The MMPA also requires that the United States Government ban the importation of commercial fish or products from fish caught with commercial fishing technology which results in the incidental killing or incidental serious injury of ocean mammals in excess of United States standards.  Under United States customs law, fish caught by a vessel registered in a country is deemed to originate in that country. 

 

. . .

 

Under the MMPA, the United States currently prohibits importation into its customs territory of yellowfin tuna and yellowfin tuna products from Mexico which were caught with purse-seine nets in the ETP. 

 

. . .

 

The Panel concluded . . . that the Note Ad Article III covers only those measures that are applied to the product as such.  The Panel noted that the MMPA regulates the domestic harvesting of yellowfin tuna to reduce the incidental taking of dolphin, but that these

regulations could not be regarded as being applied to tuna products as such because they would not directly regulate the sale of tuna and could not possibly affect tuna as a product.  Therefore, the Panel found that the import prohibition on certain yellowfin tuna and certain yellowfin tuna products of Mexico and the provisions of the MMPA under which it is imposed did not constitute internal regulations covered by the Note Ad Article III.

5.15 The Panel further concluded that, even if the provisions of the MMPA enforcing the tuna

harvesting regulations (in particular those providing for the seizure of cargo as a penalty for violation of

the Act) were regarded as regulating the sale of tuna as a product, the United States import prohibition

would not meet the requirements of Article III.  As pointed out in paragraph 5.12 above, Article III:4

calls for a comparison of the treatment of imported tuna as a product with that of domestic tuna as a

product.  Regulations governing the taking of dolphins incidental to the taking of tuna could not possibly

affect tuna as a product.  Article III:4 therefore obliges the United States to accord treatment to Mexican

tuna no less favourable than that accorded to United States tuna, whether or not the incidental taking of

dolphins by Mexican vessels corresponds to that of United States vessels.

 

. . .

 

. . .

 

5.23 The Panel proceeded to examine whether Article XX(b) or Article XX(g) could justify the MMPA provisions on imports of certain yellowfin tuna and yellowfin tuna products, and the import ban imposed under these provisions.  The Panel noted that Article XX provides that:

"Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where the same conditions prevail, or a disguised restriction on international trade, nothing in this Agreement shall be construed to prevent the adoption or enforcement by any contracting party of measures ...

(b) necessary to protect human, animal or plant life or health;  ...

(g) relating to the conservation of exhaustible natural resources if such measures are made effec-

tive in conjunction with restrictions on domestic production or consumption;  ...".

 

The Panel noted that the United States considered the prohibition of imports of certain yellowfin

tuna and certain yellowfin tuna products from Mexico, and the provisions of the MMPA on which this

prohibition is based, to be justified by Article XX(b) because they served solely the purpose of protecting dolphin life and health and were "necessary" within the meaning of that provision because, in respect of the protection of dolphin life and health outside its jurisdiction, there was no alternative measure reasonably available to the United States to achieve this objective.  Mexico considered that Article XX(b) was not applicable to a measure imposed to protect the life or health of animals outside the jurisdiction of the contracting party taking it and that the import prohibition imposed by the United States was not necessary because alternative means consistent with the General Agreement were available to it to protect dolphin lives or health, namely international co-operation between the countries concerned.

 

The Panel noted that the basic question raised by these arguments, namely whether Article XX(b) covers measures necessary to protect human, animal or plant life or health outside the jurisdiction of the contracting party taking the measure, is not clearly answered by the text of that provision.  It refers to life and health protection generally without expressly limiting that protection to the jurisdiction of the contracting party concerned.  The Panel therefore decided to analyze this issue in the light of the drafting history of Article XX(b), the purpose of this provision, and the consequences that the interpretations proposed by the parties would have for the operation of the General Agreement as a whole.

 

. . . 

 

Thus, the record indicates that the concerns of the drafters of Article XX(b) focused on the use of sanitary measures to safeguard life or health of humans, animals or plants within the jurisdiction of the importing country.

 

. . .

 

The Panel considered that if the broad interpretation of Article XX(b) suggested by the United States were accepted, each contracting party could unilaterally

determine the life or health protection policies from which other contracting parties could not deviate

without jeopardizing their rights under the General Agreement. The General Agreement would then no

longer constitute a multilateral framework for trade among all contracting parties but would provide

legal security only in respect of trade between a limited number of contracting parties with identical

internal regulations.

 

The Panel considered that the United States' measures, even if Article XX(b) were interpreted to

 permit extrajurisdictional protection of life and health, would not meet the requirement of necessity set

out in that provision.  The United States had not demonstrated to the Panel - as required of the party

invoking an Article XX exception - that it had exhausted all options reasonably available to it to pursue

its dolphin protection objectives through measures consistent with the General Agreement, in particular

through the negotiation of international cooperative arrangements, which would seem to be desirable in

view of the fact that dolphins roam the waters of many states and the high seas.  Moreover, even

assuming that an import prohibition were the only resort reasonably available to the United States, the

particular measure chosen by the United States could in the Panel's view not be considered to be necessary within the meaning of Article XX(b).  The United States linked the maximum incidental dolphin taking rate which Mexico had to meet during a particular period in order to be able to export tuna to the United States to the taking rate actually recorded for United States fishermen during the same period.  Consequently, the Mexican authorities could not know whether, at a given point of time, their policies conformed to the United States' dolphin protection standards.  The Panel considered that a limitation on trade based on such unpredictable conditions could not be regarded as necessary to protect the health or life of dolphins.

 

On the basis of the above considerations, the Panel found that the United States' direct import

prohibition imposed on certain yellowfin tuna and certain yellowfin tuna products of Mexico and the

provisions of the MMPA under which it is imposed could not be justified under the exception in Article

XX(b).

 

The Panel proceeded to examine whether the prohibition on imports of certain yellowfin tuna and certain yellowfin tuna products from Mexico and the MMPA provisions under which it was imposed could be justified under the exception in Article XX(g).  The Panel noted that the United States, in invoking Article XX(g) with respect to its direct import prohibition under the MMPA, had argued that the measures taken under the MMPA are measures primarily aimed at the conservation of dolphin, and that the import restrictions on certain tuna and tuna products under the MMPA are "primarily aimed at

rendering effective restrictions on domestic production or consumption" of dolphin.  The Panel also

noted that Mexico had argued that the United States measures were not justified under the exception in

Article XX(g) because, inter alia, this provision could not be applied extrajurisdictionally.

5.31 The Panel noted that Article XX(g) required that the measures relating to the conservation of

exhaustible natural resources be taken "in conjunction with restrictions on domestic production or

consumption".  A previous panel had found that a measure could only be considered to have been taken

"in conjunction with" production restrictions "if it was primarily aimed at rendering effective these

restrictions".44  A country can effectively control the production or consumption of an exhaustible

natural resource only to the extent that the production or consumption is under its jurisdiction.  This

suggests that Article XX(g) was intended to permit contracting parties to take trade measures primarily

aimed at rendering effective restrictions on production or consumption within their jurisdiction.

5.32 The Panel further noted that Article XX(g) allows each contracting party to adopt its own conservation policies.  The conditions set out in Article XX(g) which limit resort to this exception, namely that the measures taken must be related to the conservation of exhaustible natural resources, and that they not "constitute a means of arbitrary or unjustifiable discrimination ... or a disguised restriction on international trade" refer to the trade measure requiring justification under Article XX(g), not however to the conservation policies adopted by the contracting party.  The Panel considered that if the extrajurisdictional interpretation of Article XX(g) suggested by the United States were accepted, each

contracting party could unilaterally determine the conservation policies from which other contracting

parties could not deviate without jeopardizing their rights under the General Agreement.  The consider-

ations that led the Panel to reject an extrajurisdictional application of Article XX(b) therefore apply also to Article XX(g).

. . .

 

On the basis of the above considerations, the Panel found that the United States direct import

prohibition on certain yellowfin tuna and certain yellowfin tuna products of Mexico directly imported

from Mexico, and the provisions of the MMPA under which it is imposed, could not be justified under

Article XX(g).