Confirming early reports discussed in Issue 536 of this Update, the World Trade Organization (WTO) has again ruled in favor of Canada and Mexico regarding U.S. country-of-origin labeling (COOL) regulations requiring pork and beef products originating outside of the United States to bear labels indicating where each step in the production process occurred. The compliance panel found that the measure “accords to Canadian and Mexican livestock less favorable treatment than that accorded to like US livestock.” The panel also found that the rule’s 2013 amendment “increases the original COOL measure’s detrimental impact on the competitive opportunities of important livestock in the US market, because it necessitates increased segregation of meat and livestock according to origin; entails a higher recordkeeping burden; and increases the original COOL measure’s incentive to choose domestic over imported livestock.” Following the decision’s release, Mexican and Canadian trade officials issued a joint statement calling the COOL rule “a…
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Senior executives from the National Association of Manufacturers (NAM) and U.S. Chamber of Commerce have co-authored an October 14, 2014, letter to members of Congress urging the lawmakers to “authorize and direct the Secretary of Agriculture to rescind elements of [country-of-origin labeling (COOL)] that have been determined to be noncompliant with international trade obligations by a final [World Trade Organization (WTO)] adjudication.” Citing Americans’ jobs as a primary concern, the executives argue that the regulations requiring muscle cuts of meat to include COOL would harm the United States’ relationship with its neighbors. “We are especially concerned that, should the WTO litigation conclude with a ruling of noncompliance by the United States, Congress would be unable to amend the statute prior to Canada and Mexico, our two largest export markets, instituting WTO-authorized retaliation against U.S. exports,” the letter said. “The history is clear. Buyer supply chain needs result in export markets being…
A bipartisan group of 32 federal lawmakers led by U.S. Senators Jon Tester (D-Mont.) and Mike Enzi (R-Wyo.) penned an October 6, 2014, letter to the Senate Appropriations Committee asking its leaders to “reject efforts to weaken or suspend Country of Origin Labeling (COOL) through any continuing resolution or omnibus appropriations bill” pending a World Trade Organization (WTO) decision on the United States’ meat labeling dispute with Canada and Mexico. According to their letter, “anonymous foreign sources continue their efforts to undermine COOL,” making it essential that the Committee “not allow these rumors from abroad to preemptively weaken U.S. law before the dispute resolution process has run its course.” U.S. consumers, they contend, “have the right to know where their food comes from and farmers should be able to market their livestock as born and raised in America.” Issue 540
According to the Wall Street Journal, the World Trade Organization (WTO) has decided for Canada and Mexico and against the United States in a battle over country-of-origin labeling (COOL) of meat products. The decision has reportedly been disclosed to the three governments and is expected to be made public in late September or early October, after which the United States has 60 days to appeal. Canada and Mexico argued that the COOL rules harmed them by restricting their competitiveness. In recent months, members of the food industry and of Congress have argued against the COOL requirements. Additional information appears in Issues 529 and 533 of this Update.
The Department of Commerce has issued an affirmative preliminary determination in a countervailing duty (CVD) investigation of sugar imports from Mexico, and the United States is preparing to impose import duties as high as 17 percent on Mexican sugar. According to an International Trade Administration fact sheet, the CVD investigation was instituted in March 2014 after domestic sugar interests filed a petition seeking relief from “the market distorting effects caused by injurious subsidization of imports into the United States.” Beginning the first week of September, Commerce will instruct U.S. Customs and Border Protection to require cash deposits based on the preliminary subsidy rates calculated for different Mexican exporters. A final determination in the matter is scheduled for January 2015. An American Sugar Alliance spokesperson said that the August 26, 2014, determination “validates our claim that the flood of Mexican sugar, which is harming America’s sugar producers and workers, is subsidized…
In a letter signed by 110 members of Congress, U.S. Reps. Jim Costa (D-Calif.) and Rick Crawford (R-Ariz.) have urged Secretary of Agriculture Tom Vilsack and U.S. Trade Representative Ambassador Michael Froman to rescind the country-of-origin labeling (COOL) requirements imposed on imports from Canada and Mexico if the World Trade Organization (WTO) rules against the United States in its investigation of U.S. COOL regulations. The letter reportedly suggested that Congress is working on a permanent solution to the issue, and it warned that a WTO ruling against the United States could result in detriment to the U.S. economy. “Congress must be prepared to act and find a solution that maintains a healthy relationship with our trading partners and protects the American economy,” Costa said in a July 31, 2014, statement. The letter echoes a similar argument made by food industry groups in July 2014 correspondence. Additional information on the food…
A group of 17 U.S. senators has submitted a letter to the Commerce Department warning that a proposed suspension agreement imposing quotas on Mexican sugar imports would violate the North American Free Trade Agreement, “threaten the viability of American food manufacturers and raise food prices for American families.” Led by Sens. Jeanne Shaheen (D-N.H.) and Pat Toomey (R-Penn.), the group includes Sens. John McCain (R-Ariz.) and Dianne Feinstein (D-Calif.). Following petitions by members of the American Sugar Alliance, the Commerce Department launched an April 2014 investigation into allegations that Mexico’s mills are dumping subsidized sweetener in the United States, and the department is reportedly due to decide whether to impose duties on Mexican imports soon. “This mutual market access is beneficial to the United States: U.S. growers and refiners do not produce enough sugar to meet the demands of U.S. consumers, and imports are necessary to keep America’s food manufacturers…
The Mexican Ministry of Health has reportedly announced new restrictions on food and beverage advertisements aired during TV programs and movies viewed by children. Part of its National Strategy for the Prevention and Control of Overweight, Obesity and Diabetes, the new rules will prohibit the marketing of sugar-sweetened beverages, snacks, confectionery, and chocolate on both terrestrial and cable television from 2:30 to 7:30 p.m. during the week and from 7:00 a.m. to 7:30 p.m. on weekends. Eliminating 40 percent of ads across these four product categories, the strategy will also ban these promotions in movies rated A or AA, which covers those targeted at all ages. See Ministry of Health Press Release and BBC News, July 15, 2014. Issue 530
Several major food companies have sent a letter to four U.S. senators and representatives urging Congress to direct Secretary of Agriculture Tom Vilsack to suspend revised country-of-origin labeling (COOL) rules on muscle cuts of meat because they discriminate against Canada and Mexico. The letter argues that if the WTO determines that the rule violates U.S. trade obligations, it could authorize retaliation from Mexico and Canada, which “has already issued a preliminary retaliation list targeting a broad spectrum of commodities and manufactured products that will affect every state in the country.” The new rules dictate that meat producers must disclose where their livestock was born, raised and slaughtered and can no longer commingle livestock from differing origins to ensure COOL accuracy. The food company coalition has also challenged the new U.S. Department of Agriculture rules in federal court, and the case is pending after an en banc rehearing in the D.C.…
A recent New York Times article highlighting the apparent fragility of the lime harvest has blamed a recent shortage on “weather, disease and even Mexican criminals,” warning that increased wholesale prices have only compounded the problem. According to citrus researcher David Karp, a citrus greening disease known as huanglongbing (HLB) has already infiltrated groves in Mexico, which supplies 95 percent of the limes consumed in the United States. In addition to reducing the Key lime harvest by one-third in the past three years, the presence of HLB in Colima has stoked fears that the disease will spread to Persian limes located in Veracruz and other Mexican states. In addition, as industry leaders told Karp, the current shortfall has not only induced farmers to strip their trees early “to cash in on sky-high prices,” but attracted the attention of criminal cartels that have reportedly started “plundering fruit from groves and hijacking…
