SAN ANTONIO, Texas – Canada and Mexico have a strong legal case against the United States’ country-of-origin labelling law, says the National Cattlemen’s Association’s legal counsel.
The two countries filed a World Trade Organization challenge in November, arguing the mandatory labelling legislation for livestock, raw meat, produce and fish is anti-trade.
It could be at least a year before much happens, lawyer Gary Horlick told the NCBA’s international markets committee that met during the organization’s convention held Jan. 27-30 in San Antonio.
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“I think Canada and Mexico have some pretty good arguments,” he said.
“COOL was passed by Congress without a lot of worrying about the WTO or NAFTA (North American Free Trade Agreement) rules. On the other hand, I always hate to say my own country is going to lose so I am not issuing any predictions.”
Two sets of hearings will be held if a tribunal is appointed by February or March with arbitrators from neutral countries. A formal decision might come early next year. Horlick said an appeal is certain once a decision is made.
The U.S. will be pressured to comply if Canada and Mexico win, which could take more time. One possibility is a congressional amendment.
Horlick said a live steer or carcass coming into the U.S. is far different from what is eventually seen in the market, which means country-of-origin labels don’t mean much to a consumer. They also do not address food safety.
The NCBA had supported a voluntary form of legislation, which is common throughout the world.
NCBA policy adviser Colin Woodall agreed the law is flawed.
“If you are for country-of-origin labelling or against it, you have to be ticked off right now,” he said.
However, no data has been gathered to shed light on whether it is working or what it is costing.
“It’s been too soon and they want to see some facts before they make changes,” he said.
However, Canadian analysts are preparing documents about the costs on its domestic industry with a report expected soon.
Woodall suggested tariffs or closed borders could result if the U.S. loses.
“If they win and the WTO says they are right and it is anti-WTO, they will have the ability to retaliate against us,” he said.
“Could you imagine what would happen if our borders to our number one and number two trading partners closed to us? It would be devastating.”
