September 20, 2010

Disputed US food-labelling law awaits WTO decision

A World Trade Organisation decision on the US requirement for country-of-origin labelling on beef and pork, a move widely opposed by its neighbouring trade partners, is expected next summer following the first dispute panel hearings last week.

Canadian Cattlemen's Association president Travis Toews said the Canadian government presented compelling arguments that the labelling requirement violates the WTO agreement.

While the US said the intent of the labelling is to inform customers and not restrict trade, and that it hasn't had a negative impact on Canadian exports, Canada argued the rule is "causing considerable economic harm for Canadian livestock, and submitted extensive evidence," the cattlemen's association said.

Canada and Mexico have complained to the WTO that the food-labelling law, which requires US packers to notify customers of where farm products originated at every major stage of production, including at the retail level, is unfair.

Canadian exports of cattle and hogs to the US - the country's biggest market - have dropped because of the rule, Canadian groups have argued.

Written submissions to the WTO panel and a second oral hearing in December are expected to lead to a panel decision in July.