Category Archives Global Courts

The American Meat Institute (AMI) has apparently submitted comments to the Office of U.S. Trade Representative contending that country of-origin labeling (COOL) requirements violate U.S. international trade obligations. According to AMI, the nation’s “credibility is undermined when U.S. legislation violates America’s commitments” under international agreements. AMI claims that the COOL requirements “are not consistent with U.S. obligations” under World Trade Organization (WTO) and North American Free Trade Agreement obligations or the General Agreement on Tariffs and Trade. The organization apparently characterizes COOL as “de facto discrimination against foreign products, a result even contemplated by sponsors of the legislation who declared that it would be ‘helpful to a lot of American agricultural producers’ and force companies to rely ‘on our independent producers here in this country.’” Canada and Mexico have asked the WTO to rule on the legality of the COOL law. See AMI Press Release, January 8, 2010; meatingplace.com, January 11,…

According to a press report, three people from the Shaanxi Jinqiao Dairy Co. have been arrested and charged with producing and selling toxic food. They are apparently accused of selling more than five tons of milk powder laced with melamine to a food additive firm, which discovered the contamination. The tainted product was apparently recovered before reaching the marketplace. The detentions come a little more than a year after a nationwide scandal involving contaminated milk powder killed six children and sickened more than 300,000. The first civil trial to consider claims by parents of an injured child began in November 2009, but a second hearing in the matter has reportedly been delayed after the defendants demanded additional investigation into the cause of the child’s illness. See FoodNavigatorUSA.com, December 11, 2009.

EU ambassadors this week signed an agreement with Latin American and U.S. officials to end “a 15-year dispute over EU banana imports,” according to a December 15, 2009, press release, which described the impasse as “the longest trade dispute in history.” The European Union has apparently agreed to “gradually cut its import tariff on bananas from Latin America from €176 per tonne to €114,” in addition to providing €200 million to African and Caribbean banana-exporting countries “to help them adjust to stiffer competition from Latin America.” In return, Latin American countries will “not demand further cuts” and the United States has consented to drop its World Trade Organization (WTO) complaint against Europe’s banana importation practices. “This dispute on bananas has soured global trade relations for too long,” stated EU Agriculture and Rural Development Commissioner Mariann Fischer Boel, who noted that the accord was “well-balanced” and likely to further European objectives…

According to a news source, a Chinese court began hearing claims on November 27, 2009, in a civil suit brought against a dairy company and supermarket by the parents of a child allegedly sickened by melamine-contaminated milk. The parents are reportedly seeking US$8,080, claiming that the milk caused their 20-month-old son’s kidney stone. The companies have apparently argued in their defense that the injury should be covered under a government compensation program and that no medical records link the child’s kidney problems to drinking tainted milk. The judge has scheduled another hearing for December 9 and requested that the parties produce additional evidence. The case is the first to be heard in the tainted milk scandal, which purportedly resulted in the deaths of six infants, injury to 300,000 children and a worldwide recall of products containing contaminated milk powder. The largest company implicated, the Sanlu Group, paid US$132 million into…

As anticipated, Canada reportedly renewed its request that the World Trade Organization (WTO) establish a panel to resolve a dispute over U.S. country-of-origin labeling (COOL) requirements. The request was accepted, and the panel is expected to issue its report sometime in the second half of 2010, according to a news source. The WTO can authorize those countries winning such disputes to adopt commercial sanctions against countries violating its rules. Canada and Mexico have both challenged COOL, which requires U.S. meat processors to handle and label imported products separately, claiming violations of international trade agreements. Canadian meat producers reportedly contend that the rules have caused many U.S. processors to simply exclude Canadian products, and U.S. Department of Agriculture figures purportedly show that U.S. imports of Canadian livestock were 34 percent lower in the first half of 2009 compared to the same period in 2008. Canada’s agriculture minister was quoted as saying, “We…

The European Union has reportedly blocked a U.S. request that the World Trade Organization (WTO) settle a dispute over a ban on American poultry imports. The Office of the U.S. Trade Representative apparently asked for the ruling after industry groups criticized the scientific evidence behind an EU regulation prohibiting the pathogen-reduction treatments used in U.S. poultry processing. According to the National Chicken Council, U.S. poultry exports could exceed $300 million if EU regulators permitted the in-plant use of chlorine dioxide, trisodium phosphate, acidified sodium chlorite and peracetic acid in products destined for the European market. The European Union cannot block a second request, which is apparently expected in November. See Bloomberg.com, October 23, 2009; Meatingplace.com, October 26, 2009.

The United States has reportedly blocked Canadian and Mexican efforts to convene a World Trade Organization (WTO) panel that would determine whether the new U.S. country-of-origin (COOL) labeling requirements for meat products are fair. Under WTO procedures, a country can block the creation of a dispute settlement panel once. If, as expected, Canada and Mexico renew their calls for a panel at the WTO dispute settlement body’s November 19, 2009, meeting, the United States will be unable to block it again unless the body consents. U.S. officials reportedly told the WTO, “The U.S. urges Canada and Mexico to reconsider their decisions to request a panel in these disputes, and we are not in a position to agree to the establishment of a panel at this time.” See Meatingplace.com and Law 360, October 26, 2009.

Shortly after Canada filed its challenge to U.S. country-of-origin labeling (COOL) requirements, Mexico apparently followed suit, asking the World Trade Organization (WTO) to establish a panel to undertake a dispute settlement process. Mexico’s agricultural authority reportedly contends that the rules may unfairly discriminate against the country’s meat industry by requiring U.S. meat processors to segregate imported meats. This has allegedly led some U.S. processors to stop buying meat from Mexico or Canada. The panel request is reportedly scheduled to be considered during an October 23, 2009, meeting of WTO’s Dispute Settlement Body. See Product Liability Law 360, October 12, 2009.

The National Chicken Council and several other industry groups have signed a letter to the Office of the U.S. Trade Representative, requesting the initiation of a World Trade Organization (WTO) dispute settlement panel to re-establish poultry exports to Europe. According to the letter, the European Union prohibits four antimicrobials commonly applied in the United States to reduce pathogens on processed poultry. The trade groups have reportedly estimated that U.S. poultry exports could exceed $300 million if EU regulators permitted the in plant use of chlorine dioxide, trisodium phosphate, acidified sodium chlorite and peracetic acid in products destined for the European market. “[T]he United States should continue to pursue with the European Union resolution of the issue,” stated the letter, which concluded that “it would be most appropriate to take the issue to the next step in the WTO dispute settlement process.” See NCC News Release, October 1, 2009; Law360, October 2,…

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…

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