Canadian livestock groups were more disappointed than surprised last week after hearing of another defeat over country-of-origin labelling in the United States.
On March 28, the U.S. Court of Appeals rejected an appeal from a coalition of Canadian and American meat industry and livestock groups, which would have prevented COOL rules from remaining in effect while further lawsuits go ahead.
The three-judge panel ruled that COOL regulations can be enforced, which reaffirmed a similar decision rendered by U.S. courts in September.
“It’s not welcome news,” said Canadian Pork Council public relations manager Gary Stordy.
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“Pork producers are looking for an efficient, speedy way of dealing with the COOL legislation in the United States. We do believe there needs to be a change in legislation.”
The pork council, the Canadian Cattlemen’s Association and several American meat and livestock groups were part of the appeal.
COOL requires U.S. meat processors, packers and retailers to label beef and pork with information on where originating animals were born, raised and slaughtered.
The additional expense to do this has discouraged American packers from buying Canadian cattle and hogs, reducing the prices offered and costing the cattle and hog industries an estimated $1 billion per year since it was implemented in 2009.
Canadian livestock groups had hoped COOL would be amended in the U.S. farm bill, but that did not happen. Lobbying and the World Trade Organization’s trade dispute resolution process are now the remaining avenues.
“It wasn’t the only route we were mapping out. We felt that there was a chance that it (the injunction appeal) would perhaps move a little bit more efficiently than other routes, but we still are following through with the WTO process as well as engagement with industry in the States as well as American legislators,” Stordy said.
The WTO compliance panel heard arguments in mid-February from Canada that changes the U.S. made to COOL last year did not bring it into compliance with a previous WTO ruling.
According to the CCA, the WTO panel is likely to report to governments in June and make the report public in July. The U.S. is likely to appeal if the panel rules in favour of Canada.
“If this process must continue fully to its conclusion, Canada could be authorized to impose retaliatory tariffs on U.S. exports sometime in the first half of 2015,” the CCA said in a February news release.
The federal government has prepared a list of goods to which it would apply retaliatory tariffs, although the WTO would have to approve them if the process gets that far.
The list, made public last June, includes cattle, pigs, beef, pork, cheese, apples, cherries and a variety of other foods and manufactured goods.
