In December 2008, Canada and Mexico initiated dispute settlement proceedings against the United States’ country of origin labeling (COOL) requirements. Among other claims, Canada and Mexico alleged that the COOL statute, implementing regulations, and a U.S. Department of Agriculture letter related to the requirements discriminate against their livestock exports to the United States in breach of U.S. WTO obligations. Canada and Mexico also alleged that the U.S. COOL requirements were protectionist-based.
The WTO panel confirmed that the United States had not adopted the requirements to achieve any protectionist objective, but rather to provide consumers with information about the origin of the meat products they buy at the retail level. The panel agreed with the United States on other claims, including that labeling under COOL is not required to be on the basis of “substantial transformation” (where the animal was slaughtered).
However, the panel disagreed with the way the United States designed its requirements and determined that they provide less favorable treatment to Canadian and Mexican livestock. Additionally, the panel determined that the U.S. COOL requirements fail to meet their consumer information objective because the information included on the labels is always clear. The panel also decided that the USDA letter represents an unreasonable administration of the U.S. COOL requirements.
“Although the panel disagreed with the specifics of how the United States designed those requirements, we remain committed to providing consumers with accurate and relevant information with respect to the origin of meat products that they buy at the retail level,” said Andrea Mead, spokesman for the Office of the U.S. Trade Representative. “In that regard we are considering all options, including appealing the panel’s decision.”
USTR said it will review the panel reports and work with USDA to help ensure that U.S. consumers continue to be provided with accurate and relevant information about the origin of beef and pork retail products. The next step in the process is for the reports to be adopted by the WTO Dispute Settlement Body (DSB) or appealed to the WTO Appellate Body.
