2013-05-31

Cato: WTO Correctly Calls the U.S. to Task for Lying about Dolphins


In a dispute between the U.S. and Mexico over federal regulations defining “dolphin safe” tuna, the World Trade Organization recently held that the U.S. rules are an unjustifiable discrimination against Mexican tuna fishers. They are also in violation of WTO obligations.
This outcome is a welcome indictment of American policies that prevent eco-conscious consumers from having effective access to information, and using their power in the free market to support environmental causes. Moreover, it casts light on a growing trend that opaquely mixes health, safety, and environmental regulations with trade protectionism.
Current U.S. law prohibits tuna producers from making any statements on their product labels about how their fishing practices affect dolphins unless they meet the minimum requirements for the official “dolphin safe” label. Advocates of the law say it is about truth in advertising and accuse the WTO of putting the world’s dolphins at risk for the sake of trade flows. This argument fails to appreciate the sophisticated competence of American consumers and, more importantly, ignores the fact that these federal rules are misleading.
Tuna caught in a part of the Pacific Ocean near Mexico must meet strict requirements before it can be labeled “dolphin safe.” Mexican tuna fishers work primarily in the Eastern Tropical Pacific where dolphins and tuna often school together. They catch tuna by “setting on dolphins,” that is, by locating a school of dolphins and encircling it with nets to catch the tuna swimming underneath. This practice can result in dolphin mortality as the tuna are captured, although dolphin death has declined significantly since the institution of the International Dolphin Conservation Program, which places independent observers on all Mexican tuna fishing vessels in the region. The U.S labeling law prohibits any tuna caught using this method in this part of the ocean from being labeled dolphin safe even if an observer certifies that no dolphins were killed.

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