U.S. Appeals WTO’s Stance on COOL Regulations

The Office of the U.S. Trade Representative (USTR) has appealed a ruling made by a World Trade Organization (WTO) panel against the United States in a dispute with Mexico and Canada over country-of-origin labeling (COOL) laws for beef and pork products.

Responding to complaints filed by Canada and Mexico, WTO’s Dispute Settlement Panel ruled in November 2011 that although the United States has the right to require COOL regulations, specific requirements enacted in 2008 such as those calling for segregation of imported livestock before processing provide less favorable treatment to Canadian and Mexican livestock. The ruling was covered in Issue 419 of this Update.

According to the appeal, USTR found several errors in the panel’s ruling and contends, among other issues, that its COOL labeling does not impose unfavorable treatment of imported products because it “requires meat derived from both imported and domestic livestock to be labeled under the exact same set of circumstances.” It also claims that “the Panel errs in its analysis of crucial facts related to segregation, commingling, and the price differential in the U.S. livestock market.”

Canadian and Mexican officials were among those reportedly disappointed with the appeal. “The WTO panel decision recognized the integrated nature of the North American supply chain and marked a clear win for our industry,” said Canadian Agriculture Minister Gerry Ritz. “We are confident that the decision will be upheld so trade can move more freely, benefiting producers and processors on both sides of the border.” See Reuters, March 23, 2012.