Canada Seeks WTO Resolution of COOL Dispute with United States

Canada’s government has reportedly asked the World Trade Organization (WTO) to establish a dispute settlement panel to hear its claims that U.S. country-of-origin labeling requirements for meat have unfairly reduced demand for Canadian products. U.S. Agriculture Secretary Tom Vilsack and Trade Representative Ron Kirk responded to the request by stating, “We regret that formal consultations have not been successful in resolving Canada’s concerns over country of origin labeling (COOL) required by the 2008 Farm Bill for certain agricultural products. We believe that our implementation of COOL provides information to consumers in a manner consistent with our World Trade Organization commitments.”

Apparently, Canada was able to gain some concessions on the matter from the Bush administration, but regulations adopted after President Barack Obama (D) took office did not provide the flexibility Canadian producers were evidently seeking. Canada’s minister of international trade was quoted as saying, “The U.S. COOL requirements are so onerous that they affect the ability of our cattle and hog exporters to compete fairly in the U.S. market. That is why our government has no choice but to request a WTO panel.” According to a news source, U.S. meat packers have been unwilling to buy Canadian livestock because of the paperwork burdens COOL has imposed. It is expected that the
panel will take up to nine months to issue a final report. See USDA Statement, Financial Post and Product Liability Law 360, October 7, 2009.