WTO Rebuffs U.S. COOL Regulations

A World Trade Organization (WTO) panel has issued a ruling against the
United States in a dispute with Mexico and Canada over country-of-origin
labeling (COOL) regulations for beef and pork products. According to the
November 18, 2011, panel report, Canada and Mexico filed complaints
arguing that U.S. COOL regulations enacted in 2008 afford “imported livestock
treatment less favorable than that accorded to like domestic livestock.” In
addition to labeling requirements, the regulations evidently required the
segregation of imported livestock before processing, as well as ear tags
certifying that the cattle are free of bovine spongiform encephalopathy.

Although the WTO panel reportedly affirmed the right of the United States
to enact COOL regulations, it found that the specific requirements provided
less favorable treatment to Canadian and Mexican livestock. “Additionally,
the panel determined that the U.S. COOL requirements fail to fulfill their
consumer information objective because the information included on the
labels is not clear enough in all instances,” concluded a November 2011
statement issued by the Office of the U.S. Trade Representative, which could
appeal the ruling. Additional details about the WTO investigation appear in
Issue 398 of this Update. See The Associated Press, November 18, 2011.