WTO issues final ruling against COOL

The World Trade Organization (WTO) issued its final ruling today that the U.S. Country of Origin Labeling (COOL) law violates international trading rules. WTO had issued an interim ruling to this effect earlier this year (Feedstuffs, May 30). The U.S. has 60 days to appeal. The ruling responds to a complaint brought by the governments of Canada and Mexico that the meat from Canadian or Mexican livestock that are born in Canada or Mexico but raised in the U.S. -- gaining most of their weight with American feed, labor and technology -- should be considered as "Product of the U.S." This would recognize the validity of the provision of "substantial transformation" that was specifically written into the North American Free Trade Agreement to identify the country of origin of any merchandised products. The ruling also responds to the Canadian/Mexican argument that COOL distorts markets in that it raises costs to U.S. packers so much that they either will not buy Canadian and Mexican livestock or will do so only at discounted, lower prices. WTO also determined that COOL does not provide accurate information as to a meat product's origin. The Canadian Cattlemen's Assn. (CCA) issued a statement urging the U.S. to comply with the WTO ruling and warning that should the U.S. appeal or disregard the ruling, CCA will work with the Canadian government to, if necessary, impose retaliatory trade options. (Canada is the second-largest export market for U.S. beef and third-largest for U.S. pork, and Mexico is the largest export market for U.S. beef and second-largest for U.S. pork.)...more

This article says the U.S. is still considering whether or not to appeal.