Canadian farm groups disappointed in COOL ruling appeal

Saturday, March 24, 2012

by SUSAN MANN

The United States is appealing last November’s world trade organization ruling on mandatory meat labelling that Canada and Mexico won.

United States Trade Representative spokesperson Andrea Mead says by email they “remain committed to helping ensure that consumers are provided with accurate and relevant information with respect to the origin of beef and pork products and will continue to fight to protect the interests of U.S. consumers” at the World Trade Organization.

In November, the WTO dispute settlement panel found that the United States breached its WTO obligations because of country of origin labelling (COOL) legislation implemented in 2008. The panel found portions of the mandatory COOL discriminated against live cattle and hog imports to the United States.

Canadian government and Canadian Cattlemen’s Association officials say they’re disappointed by the American’s decision to appeal.

In a prepared email statement, federal Agriculture Minister Gerry Ritz says the government is “confident the decision will be upheld so trade can move more freely benefiting producers and processors on both sides of the border.”

Ritz says the WTO panel decision recognized the integrated nature of the North American supply chain and was a “clear win for our industry.”

Mead says in particular the United States is appealing the panel’s finding the COOL requirements accord less favourable treatment to Canadian and Mexican livestock compared to U.S. livestock. In addition “we are appealing the panel’s finding that U.S. COOL requirements are more trade restrictive than necessary to fulfill its legitimate objective.”

Mead says an appeal hearing will be scheduled in April or May with a final decision due out in the summer.

Canadian Cattlemen’s Association president Martin Unrau says they’re disappointed but not surprised the Americans have appealed the ruling.

In its press release, the cattlemen’s association says COOL continues to impact Canadian cattle prices. There is at least a $25 to $35 per head reduction in prices on every head of cattle in Canada regardless of whether they are exported to the U.S. or not.

Unrau says that’s because there isn’t any competition for the animals.

What happens now is Canada will resubmit its case with some adjustments to the WTO in Geneva, Switzerland to ensure “that we win this case at the end of the day,” he says.

Unrau says they’re not appealing the entire COOL law. Instead they’re concerned about the segregation of Canadian cattle and that the country or origin labelling system is mandatory. “That’s what we’re concerned about is the word ‘mandatory,’” he notes. BF