Mexico-Olive Oil: Remedy without a cause?

Abstract

This paper provides a legal-economic analysis of the unappealed WTO Panel Report in Mexico-Olive Oil. The case involved a countervailing-duty measure imposed by Mexico on imports of olive oil from the European Communities (in particular, Spain and Italy). The dispute raised important issues regarding the determination of causation of injury, as neither the Panel nor the investigating authority gave much credence to evidence that the main complaint of the domestic industry was the loss of a distribution agreement and brand-name rights with a Spanish exporter. The dispute also raised interesting concerns regarding the remedies for violations of procedural obligations in the conduct of anti-dumping/countervailing-duty investigations and the right of a domestic producer that has ceased production to seek protection under the trade-remedy laws. Copyright © 2010 Chad P. Bown and Niall Meagher.