UNITED STATES - CERTAIN COUNTRY OF ORIGIN LABELLING (COOL) REQUIREMENTS RECOURSE BY MEXICO TO ARTICLE 22.7 OF THE DSU
Document: panel report
Date: 8 December 2015
Document codes: WT/DS386/39
Complainant: Mexico
Respondent: U.S.
Third parties: Argentina, Australia, Brazil, Canada, China, Colombia, EU, Guatemala, India, Japan, South Korea, New Zealand, Peru, Taiwan
Dispute stage: Implementation & Compliance
Agreements cited: Art. III, X:3(a), IX  GATT 1994Art. 2, 12  Technical Barriers to Trade (TBT)Art. 2, 5, 7  Sanitary and Phytosanitary Measures (SPS)Art. 2  Rules of Origin

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.

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 2015 4, 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 amount 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.