VIII - RULINGS AND RECOMMENDATIONS

Summary

8.1 In light of the above findings, the Panel finds that the US dolphin-safe provisions:

(a) are not inconsistent with Article 2.1 of the TBT Agreement;

(b) are inconsistent with Article 2.2 of the TBT Agreement because they are more trade-restrictive than necessary to achieve a legitimate objective, taking into account the risks that non-fulfilment would create;

(c) are not inconsistent with Article 2.4 of the TBT Agreement.

8.2 For the reasons explained in Section VII of this Report, the Panel exercises judicial economy with respect to Mexico's claims under Articles I:1 and III:4 of the GATT 1994.

8.3 Under Article 3.8 of the DSU, in cases where there is an infringement of the obligations assumed under a covered agreement, the action is considered prima facie to constitute a case of nullification or impairment of benefits under that agreement. Accordingly, we conclude that, to the extent that the United States has acted inconsistently with the provisions of the TBT Agreement, it has nullified or impaired benefits accruing to Mexico under that Agreement. We therefore recommend that the DSB request the United States to bring its measures into conformity with its obligations under the TBT Agreement.