The World Trade Organization's (WTO) ruling that the US Country-of-Origin Labelling
(COOL) measure is inconsistent with its WTO trade obligations is a 'clear victory
for Canada’s livestock industry', according to the Canadian government.
Nearly three years after the Canadian government first requested the WTO's
intervention in its dispute with the US over COOL, the Organization has decided
that the measure discriminates against foreign livestock.
Canada contended that COOL has forced the livestock industries of the US's
trading partners to implement a complex labelling and tracking system with
an unnecessary paperwork burden and additional red tape. It is alleged that
the measure has led to disintegration of the North American supply chain, created
unpredictability in the market and imposed additional costs on producers on
both sides of the border.
COOL legislation was first introduced in the US in September, 2008, on an interim
basis, officially entering into force in March the following year. In December,
2008, Canada requested WTO consultations with the US, with a further round of
consultations held in June, 2009. The consultations did not resolve the issue,
leading Canada to request a WTO panel in October, 2009.
In July of this year, the WTO provided its final report to the parties to the
dispute on a confidential basis. This report has now been made public, with
the Canadian government arguing that the decision will benefit Canadian farm
families, livestock industry and the economy. Thirteen WTO country members have
joined as third parties in the dispute. Unless an appeal is made, the US will
now be required to bring its measures into conformity with its WTO obligations.
Canada and the US have the largest bilateral trading relationship in the world,
with two-way trade in goods and services reaching CAD649bn (USD623bn) last year.
Agriculture and agri-food trade accounted for CAD35bn of this total.
Ed Fast, Canada's Minister of International Trade said: “Today’s
WTO decision is good news for workers and families in Canada’s world-class
livestock industry, and further proof that our government’s commitment
to defending Canadian interests in every sector of our economy gets results.
This decision recognizes the integrated nature of the North American supply
chain in this vitally important industry. Removing onerous labelling measures
and unfair, unnecessary costs will improve competitiveness, boost growth and
help strengthen the prosperity of Canadian and American producers alike.”
Andrea Mead, Press Secretary for the Office of the U.S. Trade Representative,
said that the US government was "pleased" that the panel decision
appeared to affirm America's right to require country of origin labeling for
meat products. However, she added that: “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."
Mead disclosed that the US government is "considering all options",
including an appeal against the panel's decision.
LAWANDTAX-NEWS.COM
