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Canada takes COOL to WTO

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Published: May 14, 2009

Canada officially launched a World Trade Organization challenge of American country-of-origin labelling last week, insisting it is more about protectionism than food safety.

“We’re at the place now where we cannot wait any longer,” trade minister Stockwell Day said May 7.

“We are giving formal notice now of launching this WTO process, which will involve 60 days of what’s called the consultation period where we’ll have an opportunity in a structured environment to present clearly the case for Canada.”

On a teleconference call from Romania where Canada-European Union free trade talks were launched, Day said the United States will also make a pitch to defend itself.

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“I don’t want to prejudge how that will go but it is showing that we are moving and we are moving seriously on this issue.”

Agriculture minister Gerry Ritz told the same news conference from Ottawa that the American agreement to keep the border open to Canadian hogs despite the outbreak of H1N1 virus is a sign that the country accepts scientific evidence of product safety. COOL is more about politics, he added.

“That’s the nature of their working collaboratively with us on H1N1,” Ritz said. “When it comes to country-of-original labelling, it’s more to do with trying to bolster the domestic consumption of their own product. They’re seeing it as a labelling issue. The problem is under our trade agreements, when you strive to make it mandatory you have a problem.”

He said the frustration is that the Americans at one time seemed to understand the danger of strict COOL labelling requirements but then backtracked under the current Democratic administration.

“This is one of the biggest disappointments we’ve had in quite some time is this country-of-origin labelling,” Ritz told reporters.

“It’s been a spectre on the horizon. We thought we had it wrestled to the ground, then it came back with a different set of horns. So we’re looking at trimming those in this set of consultations and moving forward.”

A WTO consultation could lead to a dispute settlement panel by autumn and a decision within two years. Implementing any settlement could be a long process of appeal and negotiation.

Canadian trade specialists say a WTO challenge of COOL regulations will make the Americans aware that Canada is serious in its complaint and could lead to a negotiated settlement.

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