WTO tells U.S. to cool it on COOL

World Trade Organization Appellate Body issued a final rule finding the United States in non-compliance on its amended country-of-origin labeling rules.    A World Trade Organization Appellate Body on Monday issued a final rule finding the United States in non-compliance on its amended country-of-origin labeling (COOL) rules. 
   The WTO concluded body concluded, “the recordkeeping and verification requirements of the amended COOL measure impose a disproportionate burden on producers and processors of livestock that cannot be explained by the need to provide origin information to consumers, and that the exemptions under the amended COOL measure support a conclusion that the detrimental impact of that measure on imported livestock does not stem exclusively from legitimate regulatory distinctions.”
   This decision marks the third time the WTO has found the U.S. mandatory COOL rules in violation of U.S. trade obligations.
   The Canadian and Mexican governments applauded the WTO’s findings on COOL, having protested the U.S. implementation of these rules from the onset.
   “The amended COOL measure, which causes Canadian and Mexican livestock and meat to be segregated from those of U.S. origin, is damaging to North America’s supply chain and is harmful to producers and processors in all three countries,” the two governments said in a joint statement.
   “In light of the WTO’s final decision, and due to the fact that this discriminatory measure remains in place, our governments will be seeking authorization from the WTO to take retaliatory measures against U.S. exports,” they added. “We call on the United States to repeal COOL legislation and comply with its international obligations.”
   “Without addressing the WTO’s concerns with our COOL rule, the United States risks retaliatory measures from key trading partners, such as Canada and Mexico – measures that only hamper U.S. competitiveness,” said National Foreign Trade Council President Bill Reinsch. “We urge the [U.S.] House and Senate to act quickly on legislation regarding bringing the U.S. COOL rule into compliance with our trade obligations.”
   The COOL Reform Coalition urged Congress to address this issue “before its summer vacation.”
   “Otherwise, export sales will be lost, businesses will close and jobs will be lost,” the coalition warned.