The World Trade Organization (WTO)’s Appellate Body has ruled in favoured Mexico over the US in a trade dispute, stating that the US requirement for dolphin-safe tuna labels was discriminatory to Mexican fishermen.
The latest ruling upholds the earlier one issued in April which found the US rules were not fair to Mexico.
Mexico approached the WTO in 2009.
In its argument, Mexico stated that "dolphin-safe" labels were illegal as they limited trade.
It argued that its tuna production standards are on par with international standards and does not allow accidental capture of dolphins in nets, reported Associated Press.
The ruling on this appeal filed by Mexico is final, which may lead Mexico to impose trade restrictions against the US if it believes that the latter has not amended its rules as per the WTO requirements.
In a statement, US Trade Representative's office general counsel Tim Reif said, "The United States is disappointed with this most recent report".
Following this ruling, the US government intends to take a decision on the next steps to be taken and will consult with members of Congress, American fishermen and conservation NGOs.