WTO rules against U.S. country-of-origin labeling


According to Bloomberg, World Trade Organization judges upheld an earlier ruling backing Canada and Mexico stating that U.S. country-of-origin labeling (COOL) provisions violate global trade law and unfairly curb agricultural commerce.

Under U.S. law in force since March 2009, food processors must identify the nations from which cattle, hogs, and some fresh produce originate. Canada and Mexico said the provisions impose unjust costs on their exports, reducing their competitiveness. WTO judges agreed on Nov. 18 that beef and pork from Canada and Mexico were treated less favorably than the same U.S. products.

Mexico and Canada complained at the Geneva-based WTO in December 2008, challenging provisions of the U.S. Food, Conservation and Energy Act that impose mandatory country-of- origin labeling, known as COOL, for beef, pork, chicken, lamb and goat as well as some perishables sold by U.S. retailers.

COOL has caused many U.S. pork-processing companies to stop buying animals born in Canada and has cost the country’s pork industry millions of dollars, according to the Canadian Pork Council, a federation of nine provincial pork industry associations. The law costs the Canadian cattle industry C$400 million annually, the Canadian Cattlemen’s Association says.

The Food Marketing Institute (FMI) issued a statement from Regulatory Counsel Erik Lieberman after the WTO affirmed that COOL law is an illegal trade barrier. “The WTO Appellate body ruled Friday [June 29, 2012] on Canada and Mexico’s complaint against the United States’ COOL law and found that the burdensome recordkeeping and verification requirements of the meat program violate U.S. commitments under international trade agreements. COOL has forced the industry to spend tens of millions of dollars each year on unnecessary regulatory burdens—all for little-to-no benefit to consumers—which make it more expensive and difficult for supermarkets to provide customers with the consistent, high quality, and affordable imported products they deserve. With the appeals process exhausted, it’s now time for Congress and the U.S. Dept. of Agriculture to address the wastefulness of the program and create a less burdensome system.”

Additionally, the American Meat Institute (AMI) agreed with the WTO ruling: “The WTO has spoken not once but twice: mandatory country-of-origin labeling (COOL) violates our WTO obligations. While the law’s proponents continue to defend it and to challenge the WTO perspective, it’s time to ‘get over it.’ Trade has been an essential part of the U.S. livestock and meat industry’s success and our nation needs to lead in trade the trade arena by example.”