October 7, 2013

 

World Trade Organisation establishes compliance panel to review US COOL

 

 

Canada has obtained its long-awaited establishment of a World Trade Organisation (WTO) compliance panel to review US country of origin labelling (COOL) laws.

 

The said WTO compliance panel has been requested by the Canadian government in August.


"Following through on our commitment to stand up for Canadian livestock producers by pursuing all options available to resolve this dispute, our government requested and obtained the establishment of a WTO compliance panel on US COOL," said Canadian Agriculture Minister Gerry Ritz. "Our government continues to aggressively lobby the US government to make a legislative change to finally put an end to mandatory COOL that hurts producers on both sides of the border."


Meat packers must label muscle cuts of meat with information about where each of the production steps occurred under the revised COOL regulation. In 2012, the US lost an appeal of a WTO challenge brought by Canada and Mexico. The WTO Appellate Body said US mandatory COOL regulations violated trade agreements by giving less favourable treatment to Canadian cattle and hogs compared to US domestic livestock.


Canada maintains that US COOL fails to comply with WTO obligations and that revisions to the law will do more harm to Canadian cattle and hog producers. In case Canada prevails in the compliance proceedings, it could seek authorisation from the WTO to impose retaliatory tariffs on US imports. The Canadian government released a list of possible target products in June.


According to International Trade Minister Ed Fast, "Our government understands the importance of global markets to the families that rely on our world-class Canadian livestock producers for their livelihood. That's why we're standing up for producers and processors on both sides of the border by establishing a WTO compliance panel and why we continue to ask the US to respect its international trade obligations and put an end to mandatory COOL."


Meat industry groups are fighting the labelling law in US federal court, while Canada fights COOL at the WTO. Groups representing US, Canadian and Mexican meat industry interests filed an initial brief as part of an appeal of a US District Court ruling denying a motion for a preliminary injunction against implementation of COOL.

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