Canada Renews COOL Dispute Before World Trade Organization
Concerned that the United States does not plan to make any changes to its country-of-origin labeling (COOL) rules for meats, fresh produce and nuts, Canada has apparently decided to move forward with a complaint it originally filed in December 2008 with the World Trade Organization (WTO). According to Canada’s trade minister, “Recent instructions from the U.S. Secretary of Agriculture encouraging the U.S. industry to use very strict labeling practices have removed flexibility previously envisioned in the legislation and this affects the ability of our cattle and hog exporters to compete fairly in the U.S. market.”
U.S. imports of Canadian cattle reportedly dropped 32 percent in the first two months of 2009 compared with the same period in 2008, and hog imports have fallen 40 percent. The reductions are apparently blamed, in part, on COOL requirements that U.S. plants segregate and separately label imported products. Canadian producers also claim that the rules have led to a surplus in local markets, thus depressing prices. If the WTO dispute is not resolved within 60 days, Canada could, evidently, request a dispute panel to rule on the issue. If it prevails, Canada could then legally impose retaliatory measures on U.S. imports. According to a news source, Mexico is also discussing a challenge to the COOL law before the WTO. See FoodNavigator-USA.com, May 13, 2009.
