The Agri Post
Eight Year M-Cool Battle Over By Les Kletke The World Trade Organization (WTO) has issued a final ruling confirming that US mandatory country of origin labeling (COOL) discriminates against live US imports of Canadian cattle and hogs within the scope of the Agreement on Technical Barriers to Trade (TBT). Under the TBT, WTO members cannot create obstacles to trade which are unnecessary or which, amount to arbitrary or unjustifiable discrimination or a disguised restriction on international trade. On 18 May 2015, the WTO Appellate Body issued its “compliance report” stating the recordkeeping and verification requirements of the amended COOL measure impose a disproportionate burden on producers and processors of livestock. This burden cannot be explained by the need to provide origin information to consumers. In addition the exemptions under the amended US COOL measure supports a conclusion that the detrimental impact of that measure on imported livestock does not stem exclusively from legitimate regulatory distinctions. The WTO further summarized in its key findings that the panel had noted that between 57.7% and 66.7% of beef and between 83.5% and 84.1% of pork muscle cuts consumed in the US convey no consumer information on origin despite imposing an upstream recordkeeping
burden on producers and processors that has a detrimental impact on competitive opportunities for imported livestock. The fourth and final ruling ends an eight-year battle initiated by the Canadian Cattlemen’s Association challenging the 2007 US labelling law. Dave Solverson, President of the Canadian Cattleman’s Association called it “incredibly important and a historic part of the Canadian Cattle industry. With a final ruling from the WTO affirming the Canadian beef industry’s right to fair market assess firmly in hand the CCA urges the US Congress to final repeal COOL on red meat.” Manitoba Beef Producer President Heinz Reimer said, “Although not unexpected, we are pleased with the WTO’s ruling. We have long maintained the COOL is a discriminatory practice and the WTO’s decision makes this clear once and for all. If the US were to repeal COOL, there would be immediate positive impacts for producers in Manitoba and across Canada. Reimer made a point of thanking the Federal government for its continued effort in the process. It is unclear if the US will take the required actions after the decision and Reimer is confident the Canadian government will take the steps required to move the process along. That might require retaliatory tariffs against a
May 29, 2015
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They Won’t Back Down By Les Kletke
Ag Minister Gerry Ritz is being applauded by farm groups for taking the American legislation regarding Country of Origin Labeling to the WTO.
previously determined list of U.S. products. The Canadian Pork Council (CPC) had a similar view of the ruling. “The WTO has confirmed this discrimination for the fourth time,” said CPC Chair Rick Bergmann. This is the WTO’s final judgement and it is comprehensive and compelling there is not
Rick Bergmann of the Canada Pork Council says the move to stop COOL legislation is good for Canadian Pork producers.
wiggle room.” He is hopeful they will act on the measure. “The United States has now lost four times,” he said. “Congress must accept the reality and act as a responsible WTO member and a leading force in trade liberalization.” The CPC worked together with the Federal government and the Canadian Cattlemen Association to bring about the challenges against the COOL legislation in the 2008 Farm Bill. The Canadian livestock industry estimates the damage done by the COOL legislation at a billion dollars annually. The CCA alone said its cost in fighting the legislation is $3.25 million but Solverson said that this is minor in comparison to the hardship the legislation has caused Canadian beef producers.
While the World Trade Organization (WTO) handed down a ruling against Country of Origin Labelling (COOL) not all US farm groups are willing to accept the decision. House Agriculture Committee Chairman Michael Conaway introduced a bill to repeal COOL legislation for beef, pork and chicken products saying it was a target response to the WTO ruling. “Conaway is misleading Congress and the American people,” said Bill Bullard, CEO of R-CALF. “Conaway’s bill is another. More than a siren call by the one per cent. He is trying to coerce the public into support something that will ultimately cause them harm.” R-CALF has been one of the strongest supporters of the COOL legislation during the 8-year battle between Canadian and American cattlemen. Bullard points out that Conaway’s bill also calls for the removal of chicken meat from the COOL legislation. “This is proof that Conaway’s bill is not a target response to the WTO but he is exploiting the WTO ruling to support the multinational meat packer’s decade long effort to hide the origins of food from consumers. Bullard bases none of his arguments on benefits to the
Bill Bullard is the president of R-CALF and does not believe the battle over COOL is done simply because the ruling is against the US.
American consumer or that any meat products from Canada or Mexico provide a threat to food safety in the US. He does not dispute that the decision follows the law of the WTO agreement. The only case that he makes against the agreement is that the presiding official at the WTO hearing Ricardo Hernandez was in a conflict of interest position because he has represented Mexico in international traded litigation and was the lead council to the Mexican government in the past two WTO disputes. “This is the tip of the iceberg in the problems that Congress created by ceding a huge swath of US sovereignty to the unelected and unaccountable WTO tribunal,” Said Bullard. “What Conaway is doing is a travesty and we hope that the majority of members will quickly see through it.” The majority of farm groups in the US appear to have accepted the ruling and are waiting to see what the impacts
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