WTO Panel Says Costa Rica Violated SPS Agreement Over Restrictions on Mexican Avocados
A World Trade Organization panel came back with conclusions in a case over sanitary and phytosanitary measures imposed by Costa Rica on Mexican avocados, finding that the measures violate aspects of the WTO's Sanitary and Phytosanitary Measures agreement. The case concerns five phytosanitary regulations that Mexico identified as being in violation of the agreement.
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Regarding Mexico's claims that Costa Rica's risk assessment measures stand in violation of WTO commitments, the panel said that Costa Rica violated the SPS agreement by failing to ensure its measures are based on an assessment of the risks to plant life, failing to take into account available scientific evidence and the prevalence of specific diseases, and failing to take into account the potential damage to product or sales as relevant economic factors when assessing the risk to plant life.
Over Mexico's claims of discrimination, the panel said that "there are arbitrary or unjustifiable distinctions in the levels of protection that Costa Rica considers to be appropriate in different situations, which result in discrimination or a disguised restriction on international trade." Further, Costa Rica discriminated between its own territory and Mexican territoriy, applying phytosanitary measures on avocados that restrict international trade, the conclusions said.
"In view of the foregoing, the Panel concludes that, insofar as Costa Rica has acted inconsistently with the provisions of the SPS Agreement, it has nullified or impaired benefits accruing to Mexico under that Agreement," the conclusions said. "Pursuant to Article 19.1 of the DSU, the Panel recommends to the DSB that Costa Rica be asked to bring its measures into conformity with its obligations under the SPS Agreement."