House Ag Committee approves COOL repeal bill

The House Agriculture Committee approved H.R. 2393, a bill to repeal Country of Origin Labeling (COOL) requirements for beef, pork and chicken. The panel amended the Agriculture Marketing Act of 1946, on a 38-6 vote. While repealing the labeling requirements on beef, pork and chicken, it leaves intact the requirements for all other covered commodities. The bill was approved on May 20, just two days after the World Trade Organization’s (WTO) Appellate Body ruled against the United States’ COOL requirements for meat. Canada and Mexico had challenged the rule for muscle cuts of meat at the WTO, arguing that COOL has a trade-distorting impact by reducing the value and number of cattle and hogs shipped to the U.S. market. H.R. 2393 was authored by House Ag Committee Chair K. Michael Conaway (R-Texas), and co-sponsored by 68 Democrats and Republicans. Conaway pledged to work to get the bill to the House floor as quickly as possible. When WTO finalizes the ruling by the end of the month, Canada and Mexico can formally request permission to retaliate against the United States. Retaliation will be determined by how much the two countries can raise tariffs to address their losses under the U.S. meat labeling requirement. A panel will have 60 days to review the tariff amount, although the United States, Canada and Mexico could discuss a settlement before the 60-day clock runs out. Without a settlement, the United States could see retaliatory tariffs by late summer or fall. Canada has already issued a preliminary retaliation list targeting a broad spectrum of commodities and manufactured products. Mexico has not yet announced a preliminary retaliation list, but has implemented retaliatory tariffs in the past, which may be indicative of future tariff actions...more