September 21, 2010
Canada and Mexico speak out against US food origin regulations
Canada and Mexico have begun arguments against US country-of-origin-labelling (COOL) regulations on beef and pork in front of the World Trade Organisation, which is expected to rule on the matter sometime next summer.
The bordering nations' beef and pork producers argued in a hearing last week that COOL has slashed their exports to the US, and that the law violates WTO rules governing bilateral trade. COOL has caused a US$40-US$60-per-head drop in Mexican cattle prices, for example, imported into the US, according to Alejandro Gomez, an attorney for Mexican cattlemen.
The US did not challenge such economic evidence, but claimed the impacts resulted from choices made by market participants rather than from the US law itself. Washington also argued COOL was intended to inform consumers about the origins of their food and it has not negatively impacted Canadian cattle.
"We correctly anticipated the arguments the US would use to defend (country-of-origin labelling), and while there were no surprises, it is clear that the US intends to defend this trade barrier vigorously," Canadian Cattlemen's Association (CCA) president Travis Toews said in a statement.
Canada and Mexico received support at the WTO hearing from 13 other countries, according to the North American Meat Processors Association (NAMP), quoting an attorney for Mexican cattlemen. Donald E. deKeiffer said only Australia had "real world" problems with the COOL regulations, but all were concerned about the negative precedent the US policy is setting.
According to CCA, there is well over another year left in the process.
Over the next five weeks, written answers will respond to numerous questions posed by the panel. There will then be an opportunity to provide written rebuttals by late October.
A second oral hearing is set for December, followed by further written submissions through February. A final panel report is scheduled for July 2011, most likely followed by an appeal taking another year, CCA projected.
