GENEVA—On Nov. 18, the World Trade Organization (WTO) ruled in support of complaints by Canada and Mexico that U.S. country-of-origin labeling (COOL) labeling on fresh beef and pork violates global trade rules and unjustly harms agricultural commerce.
In 2009, the U.S. Department of Agriculture (USDA) announced final regulation for the mandatory country of origin labeling (COOL) program required by the 2002 and 2008 farm bills. The rule became effective on March 16, 2009. In late 2009, Canada and Mexico requested the WTO form a dispute-settlement panel to resolve a dispute over the U.S.'s mandatory country-of-origin labeling (COOL) law, which requires firms to track and notify customers of the country of origin of meat and other agricultural products at each major stage of production, including retail. The two countries contended the COOL rule caused a significant drop in U.S. beef and pork imports.
The rule covers muscle cuts and ground beef, lamb, chicken, goat and pork; wild and farm-raised fish and shellfish; perishable agricultural commodities (specifically fresh and frozen fruits and vegetables); macadamia nuts; pecans; ginseng and peanuts.
In its final reports the panel affirmed that the United States has the right under WTO rules to adopt COOL requirements. The panel also confirmed that the United States had not adopted these requirements to achieve a 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. The panel also determined that the U.S. COOL requirements fail to fulfill their consumer information objective because the information included on the labels is not clear enough in all instances.
“We are pleased that the panel affirmed the right of the United States to require country of origin labeling for meat products," said Andrea Mead, Press Secretary for the Office of the U.S. Trade Representative. “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. In that regard we are considering all options, including appealing the panel’s decision."
