United States – Measures Concerning the Importation, Marketing and Sale of Tuna and Tuna Products: Recourse to Article 21.5
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United States – Measures Concerning the Importation, Marketing and Sale of Tuna and Tuna Products: Recourse to Article 21.5 of the DSU by Mexico (DS381) First Written Submission of the United States of America May 27, 2014 TABLE OF CONTENTS Table of Acronyms ........................................................................................................................ iv Table of Reports ............................................................................................................................ vii Table of Exhibits ............................................................................................................................ xi I. Introduction .............................................................................................................................. 1 II. Factual Background.................................................................................................................. 2 A. The Amended Dolphin Safe Labeling Measure ................................................................. 2 1. Overview of the Original Measure ............................................................................... 3 2. The 2013 Final Rule...................................................................................................... 3 3. The Requirements of the Amended Dolphin Safe Labeling Measure .......................... 5 a. Fishing Methods ...................................................................................................... 5 i. Large-Scale Driftnet Fishing on the High Seas ................................................. 5 ii. Setting on Dolphins ........................................................................................... 9 iii. All Other Fishing Techniques.......................................................................... 10 b. Certifications ......................................................................................................... 10 i. Captain Statements .......................................................................................... 10 ii. Observers ......................................................................................................... 12 c. Record-Keeping .................................................................................................... 13 B. The AIDCP ....................................................................................................................... 17 1. Overview of the AIDCP Regime ................................................................................ 17 2. Requirements of the AIDCP ....................................................................................... 18 a. AIDCP Requirements Relating to Setting on Dolphins........................................ 18 b. Record-Keeping Requirements ............................................................................. 18 c. Observer Requirements ......................................................................................... 20 3. The AIDCP Dolphin Safe Labeling Regime .............................................................. 20 C. Harms to Dolphins from Tuna Fishing ............................................................................ 21 1. Non-Eligible Fishing Practices: Large-Scale Driftnets and Setting on Dolphins ...... 23 a. Large-Scale High Seas Driftnets ........................................................................... 23 b. Setting on Dolphins .............................................................................................. 24 i. Setting on Dolphins Targets Dolphins ............................................................. 25 ii. Where Setting on Dolphins Occurs ................................................................. 26 iii. “Setting on Dolphins Is Particularly Harmful to Dolphins” ............................ 27 iv. Dolphin Populations Inside the ETP ............................................................... 32 United States – Measures Concerning the Importation, U.S. First Written Submission Marketing and Sale of Tuna and Tuna Products: May 27, 2014 Recourse to DSU Article 21.5 by Mexico (DS381) Page ii 2. Other Fishing Techniques Do Not Present an “Equal” or “Greater” Harm to Dolphins than the Harm Caused By Setting on Dolphins .......................................... 34 a. Members and Fishing Methods That Produce Tuna for the U.S. Tuna Product Market...................................................................................................... 38 b. Fishing Methods Used to Produce Tuna Product for the U.S. Market .................. 40 i. Purse Seine Fishing Other than by Setting on Dolphins .................................. 40 ii. Longline Fishing .............................................................................................. 42 iii. Pole and Line ................................................................................................... 46 c. Fishing Methods That Are Not Used to Produce Tuna Product for the U.S. Market ................................................................................................................... 46 i. Hand Line ........................................................................................................ 46 ii. Gillnets ............................................................................................................. 47 iii. Trawls .............................................................................................................. 48 3. Mexico Fails to Prove That Fishing Methods That Are Potentially Eligible for the Dolphin Safe Label Harm Dolphins to an “Equal” or “Greater” Extent Than Setting on Dolphins Does .................................................................................. 49 III. Legal Argument...................................................................................................................... 51 A. Terms of Reference of the Article 21.5 Proceeding ......................................................... 51 B. Mexico Fails To Establish that the Amended Dolphin Safe Labeling Measure Is Inconsistent with Article 2.1 of the TBT Agreement ....................................................... 54 1. What Article 2.1 Requires........................................................................................... 55 2. The DSB Recommendations and Rulings................................................................... 58 3. The 2013 Final Rule Directly Addresses the Concerns Identified by the Appellate Body ........................................................................................................... 61 4. Mexico’s Attempt to “Appeal” the Appellate Body’s Report Must Fail .................... 63 a. Mexico’s Claim Falls Outside the Panel’s Terms of Reference ........................... 64 b. The Appellate Body Has Already Rejected the Entirety of Mexico’s Article 2.1 Claim ................................................................................................... 66 i. The First Element: Setting on Dolphins .......................................................... 68 ii. The Second and Third Elements: Record-Keeping, Verification, and Observers ........................................................................................................ 69 c. Mexico Fails To Prove that Any of These Three Elements Is Relevant to the Article 2.1 Analysis......................................................................................... 70 d. Mexico Fails To Prove that the Detrimental Impact Does Not Stem Exclusively from Legitimate Regulatory Distinctions ......................................... 71 United States – Measures Concerning the Importation, U.S. First Written Submission Marketing and Sale of Tuna and Tuna Products: May 27, 2014 Recourse to DSU Article 21.5 by Mexico (DS381) Page iii i. Mexico Fails To Prove that the Eligibility Conditions Are Not Even- Handed ............................................................................................................ 72 ii. Mexico Fails To Prove that the Record-Keeping and Verification Requirements Are Not Even-Handed ............................................................. 77 iii. Mexico Fails To Prove that the Requirement for an Observer Certification Is Not Even-Handed .................................................................. 81 5. Conclusion on Article 2.1 ........................................................................................... 88 C. Mexico Fails To Establish that the Amended Dolphin Safe Labelling Measure Is Inconsistent with Article I:1 of the GATT 1994 ............................................................... 88 D. Mexico Fails To Establish that the Amended Dolphin Safe Labeling Measure Is Inconsistent with Article III:4 of the GATT 1994 ............................................................ 92 1. Mexico Fails To Prove that the Amended Dolphin Safe Labeling Measure Provides Less Favorable Treatment to Mexican Tuna Products ................................ 93 2. Mexico’s Attempt To Eliminate Any Examination of the Basis on Which the Member Is Regulating Must Fail ................................................................................ 96 E. The Amended Dolphin Safe Labeling Measure Is Justified Under Article XX of the GATT 1994 ....................................................................................................................... 99 1. The Amended Dolphin Safe Labeling Measure Satisfies the Standard