U.S. appeals WTO decision on COOL

The United States filed an appeal with the World Trade Organization on the trade body’s recent decision to oppose certain U.S. country of origin labeling requirements.    On Friday, the United States filed an appeal with the World Trade Organization on the trade body’s recent decision to oppose certain U.S. country of origin labeling requirements.
   The WTO dispute panel on Oct. 20 sided with Canada and Mexico over the U.S. government’s application of country of origin labeling rules, as amended in 2013, for beef and pork.
   The WTO also ruled on June 29, 2012, that the United States’ COOL unfairly discriminated against Canada and Mexico because it gave less favorable treatment to beef and pork imported from those countries than to U.S. meat; it said the United States had until May 23, 2013, to bring its COOL measure on livestock imports from Canada and Mexico into compliance with its WTO obligations. Canada and Mexico then challenged the revised U.S. COOL rules for livestock in the WTO.
   However, the United States had the option to file an appeal with the WTO after the Oct. 20 panel decision. The WTO Appellate Body has up to three months to conclude its report.
   On Nov. 14, U.S. Agriculture Secretary Tom Vilsack said the COOL law does not provide the Agriculture Department the discretion needed to change COOL requirements to ensure compliance with U.S. trade obligations. The COOL Reform Coalition, which consists of more than 100 trade associations and companies, responded by asking Congress on Nov. 21 to build a contingency plan for the COOL law regarding beef and pork cuts to protect U.S. exports.
   “The governments of Mexico and Canada, which brought the case to the WTO, would be authorized to retaliate against the U.S. by imposing tariffs on U.S. manufactured goods and agricultural products in the event of a final WTO adjudication on the matter, which is expected in the second half of 2015,” the coalition warned in its letter to U.S. lawmakers. Retaliatory tariffs against a range of U.S. exports to these two countries could reach as much as $2 billion.
   “The compliance panel report leaves no shadow of a doubt that the U.S. COOL legislation is causing discrimination against live imports of cattle and hogs into the U.S. marketplace,” said Canadian Cattlemen’s Association President Dave Solverson in a recent statement. “Until COOL comes into compliance with the WTO, the CCA will continue to insist that the government of Canada prepare to impose prohibitively high tariffs on key U.S. exports to Canada, including beef.”