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…
Category Archives World Trade Organization
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…
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…
The European Commission has reportedly indicated that it will file a World Trade Organization (WTO) challenge to the U.S. decision to impose new tariffs on European Union (EU) products involved in sanctions stemming from a dispute over beef hormones. The EU has banned hormone-treated beef since the early 1980s, and the WTO ruled in 1998 that the ban violated trade rules, thus opening the door for U.S. and Canadian trade sanctions. While the EU contends that it has scientific grounds to support the ban, the United States and Canada have maintained their trade sanctions against the European bloc. According to a French Roquefort cheese producer, 100 percent tariffs have been imposed on his products for nine years; a new sanctions update has increased the penalty to 300 percent. “Sales of Roquefort to the United States will be finished,” he reportedly said. At issue is a Bush administration decision to suspend the…
In late December 2008, Mexico banned imports of meat from 30 U.S. processing facilities, telling the USDA that sanitary issues were to blame, although some, including Senator Charles Grassley (R-Iowa), suggested that the move was in retaliation for the new country-of-origin labeling (COOL) rules that took effect September 30. Mexican officials denied any connection and reportedly lifted the embargo for 26 of the plants as of December 30. According to a news source, Mexico is the leading buyer of U.S. meat, and the suspension led to a sharp decline in cattle and hog futures at the Chicago Mercantile Exchange. U.S. and Mexican officials were reportedly scheduled to meet January 5, 2009, to discuss meat import issues. Meanwhile, Mexico has reportedly joined Canada before the World Trade Organization seeking consultations with the United States over the COOL regulations. The two countries are apparently most concerned about the impact on meat and livestock,…
The Canadian government has reportedly filed a complaint with the World Trade Organization (WTO), challenging the U.S. country-of-origin labeling (COOL) law. According to a news source, Canada alleges that COOL will impose unnecessary costs on meatpackers that use Canadian livestock and could lead to additional and more stringent labeling requirements in other countries. Canadian Trade Minister Stockwell Day was quoted as saying, “We believe that the country-of-origin legislation is creating undue trade restrictions to the detriment of Canadian exporters.” The complaint initiates a consultation period, which, if unsuccessful, could lead to resolution by a WTO dispute settlement panel. Canadian beef and pork producers recently called on the government to institute such action; further details about their concerns appear in issue 281 of this Update. See Meatingplace.com, December 2, 2008.
