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WTO rules on Canada/Mexico COOL challenge


By Meatingplace Editors on 10/20/2014

The World Trade Organization ruled today on a challenge Canada and Mexico made to the current U.S. Country of Origin Labeling (COOL) requirements that certain meat product labels in the United States reveal the origins of the product.

The panel found while COOL does accord Mexican and Canadian livestock less favorable treatment than U.S. livestock, it also concluded the amended COOL measure does contribute to providing U.S. consumers with information on origin, countering the complaintants' assertion that COOL did not serve that intended purpose.

The WTO has requested the United States come into compliance on the livestock issue.   

To read the full panel decision, click here.  

NAMA/AMI respond

The North American Meat Association and the American Meat Institute issued the following statement on the ruling: 

“The WTO decision upholding Canada’s and Mexico’s challenge to the U.S. COOL rule comes as no surprise. USDA’s mandatory COOL rule is not only onerous and burdensome on livestock producers and meat packers and processors, it does not bring the U.S. into compliance with its WTO obligations. By being out of compliance, the U.S. is subject to retaliation from Canada and Mexico that could cost the U.S. economy billions of dollars.

"While the U.S. has the option to appeal the ruling, we encourage USTR and USDA to instead work together with the industry and Congress to amend the COOL statute so that it complies with our international obligations and brings stability to the market.  Such a change would help restore strong relationships with some of our largest and most important trading partners.”

Sen Ag committe chair response

U.S. Senator Debbie Stabenow (D-Mich.), chairwoman of the U.S. Senate Committee on Agriculture, Nutrition and Forestry, issued the following statement:

“The World Trade Organization has once again ruled that consumers have a right to know where their food comes from,” said Stabenow. “We can spend decades litigating this issue at the WTO, or we can work together to find a solution that encourages international trade and gives consumers what they need to make choices for their families. 

While today’s WTO announcement ruled in favor of the U.S. on the fundamental legitimacy of country of origin labeling laws, it also raised concerns about the structure of the COOL program. Sen. Stabenow is committed to protecting the legitimacy of the COOL program and move beyond the litigation for the benefit of producers, processors, and consumers."

NCBA response

The National Cattlemen's Beef Association issued the following statement:  

"The announcement today by the WTO dispute panel on the U.S. Country of Origin Labeling rule brings us all one step closer to facing retaliatory tariffs from two of our largest trading partners. Our producers have already suffered discounts and faced the closure of a number of feedlots and packing plants due to the effects of this short-sighted regulation. COOL is a failed program that will soon cost not only the beef industry, but the entire U.S. economy, with no corresponding benefit to consumers or producers.

"NCBA has maintained that there is no regulatory fix to bring the COOL rule into compliance with our WTO obligations or that will satisfy our top trading partners. We look forward to working with Congress to find a permanent solution to this issue, avoiding retaliation against not only beef, but a host of U.S. products.”

NPPC responds

The National Pork Producers Council expressed concern that Canada and Mexico could retaliate by placing tariffs on U.S. pork. 

“The United States must avoid retaliation from Canada and Mexico,” said NPPC President Howard Hill, a veterinarian and pork producer from Cambridge, Iowa. “Retaliatory tariffs on pork would be financially devastating to U.S. pork producers.”

NPPC supports an approach to labeling that provides important information to consumers, complies with U.S. international trade obligations and does not undermine U.S. meat supply chains and unnecessarily raise costs.


 
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