WT/DS386/39  
8 December 2015  
(15-6490)  Page: 1/2  
 Original: Spanish  
 
  UNITED STATES - CERTAIN COUNTRY OF ORIGIN 
LABELLING (COOL) REQUIREMENTS 
RECOURSE BY MEXICO TO ARTICLE 22.7 OF THE DSU 
The following communication, dated 7 December 2015, from the delegation of Mexico to the 
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 22.7 of the DSU.  
_______________ 
  Upon instructions from my authorities, I hereby request that a special meeting of the Dispute 
Settlement Body (DSB) be held on 18 December 2015 and that the following item be included in 
the agenda: 
United States - Certain Country of Origin Labelling 
(COOL) Requirements (DS386). 
- Request by Mexico to suspend obligations in 
conformity with Article 22.7 of the DSU 
On 23 July 2012, the DSB adopted the Appellate Bo dy report and the modified panel report. In 
those reports, it was found that the measure on country of origin labelling (COOL) adopted by the United States was inconsistent with the obligations of Article 2.1 of the Agreement on Technical 
Barriers to Trade  (TBT Agreement). The DSB recommended that the United States bring the COOL 
measure into conformity with its obligations. 
In this connection, the United States informed the DSB that it intended to implement the DSB 
recommendations and rulings. On 23 May 2013, the United States Department of Agriculture 
introduced administrative amendments to th e COOL measure (amended COOL measure). In 
Mexico's opinion, those amendments did not bring the United States into compliance with the recommendations and rulings of the DSB, and Me xico therefore initiated a proceeding under 
Article 21.5 of the Understanding on Rules and Procedures Governing the Settlement of Disputes  
(DSU). 
The compliance panel found that the amended COOL measure is inconsistent with Article 2.1 of the 
TBT Agreement and Article III:4 of the General Agreement on Tariffs and Trade 1994  
(GATT 1994). The Appellate Body report circulated to WTO Members on 18 May 2015 upheld the 
Panel's conclusions on Article 2.1 of the TB T Agreement and Article III:4 of the GATT 1994. 
On 29 May 2015, the DSB adopted the Article 21.5 Appellate Body report and the compliance 
panel report, as modified by the Appellate Body report. 
On 17 June 2015, in accordance with Article 22 of the DSU and the "Agreed Procedures under 
Articles 21 and 22 of the Dispute Settlement Understanding"
1, Mexico requested authorization 
from the DSB to suspend the application to the United States of tariff concessions and other 
related obligations in the goods sector under the GATT 1994.2 
                                               
1 WT/DS386/24. 
2 WT/DS386/35. WT/DS386/39 
- 2 - 
  On 22 June 2015, the United States objected to the level of suspension of concessions or other 
obligations under the GATT 1994 proposed by Mexico.3 
Consequently, in accordance with the provisions of Article 22.6 of the DSU, the matter was 
referred to arbitration. 
The Arbitrator issued its decision on 7 December 20154, in which it determined the level of 
nullification or impairment caused to Mexico by the COOL measure. 
In accordance with Article 22.7, Mexico requests authorization from the DSB to suspend the 
application to the United States of tariff concessions and other related obligations in the goods 
sector under the GATT 1994 in an am ount of US$227.758 million annually. 
Mexico will implement the suspension of tariff concessions and other related obligations by 
increasing import tariffs on goods from the United States. 
Mexico will submit the details of this measure at the earliest possible date. 
Finally, I request that this communication be circulated to all Members. 
__________ 
                                               
3 WT/DS386/36. 
4 WT/DS386/ARB.