The U.S. House of Representatives’ agriculture committee today passed a measure aimed at repealing country-of-origin labelling, only two days after the United States lost a final World Trade Organization ruling against the meat regulations.
In a 38-6 vote, the measure put forward by committee chair Michael Conaway passed easily as the committee moved to circumvent trade retaliation measures likely to be imposed by Canada and Mexico.
The measure would have to be passed by the House and Senate before any changes would occur.
Saskatchewan agriculture minister Lyle Stewart was quick off the mark with a response to the American move.
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“We are encouraged to see our trade partners taking steps to rectify the situation and repeal COOL,” said Stewart.
“It is our hope that the U.S. continues to make progress towards the repeal and the need for retaliatory measures is not required. The House committee on agriculture approving a bill to repeal COOL is a step in the right direction, but until COOL is no longer impacting cattle and hog producers in the province, we will be pressing for total compliance with WTO obligations.”
The U.S. Senate must also deal with COOL if any changes are to occur. The Senate has been more supportive of the legislation than was the House.
COOL rules required American meat processors to label beef and pork with information on where the originating animals were born, slaughtered and processed. The additional expense this entailed caused American packers to discount or avoid buying Canadian animals.
The Canadian cattle and hog industries estimated COOL has cost them about $1 billion per year in reduced sales since it was enacted.
Both Canada and Mexico challenged COOL, and the WTO has now ruled in their favor four times: on initial COOL legislation, revised legislation and appeals. The WTO ruled that COOL unfairly distorted trade.
Federal agriculture minister Gerry Ritz said after the May 18 WTO announcement that Canada would seek authority to impose retaliatory measures against the U.S. unless it repealed COOL or otherwise brought it into compliance with world trade rules.
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