U.S. National Cattlemen’s Beef Association official believes World Trade Organization will condemn U.S. policy
SAN ANTONIO, Texas — The World Trade Organization will examine the U.S. appeal of the latest challenge to its country-of-origin labelling law Feb.16-17.
The appeal body is expected to rule in Canada and Mexico’s favour for a fourth time, declaring the law in violation of international trade agreements by discriminating against livestock exporters.
“We do not expect them to change their mind. Once they look at it, they are not likely to overturn it,” Colin Woodall, vice-president of government affairs for the National Cattlemen’s Beef Association in the United States, told a government policy session at the NCBA convention held in San Antonio Feb. 3-7.
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The 31,000 member organization wants the six-year-old law killed, which Woodall said is possible now that Republicans control the House of Representatives and Senate.
Both chairs of the House agriculture committees are Republican, and Woodall suggested they would be willing to kill COOL.
Canada has pledged punishing tariffs against a long list of American products if the law is not changed or rescinded.
The tariff on American pork and beef would be 100 percent.
“Canada and Mexico have traditionally been two of the top markets for U.S. beef, so restricted access or tariffs is going to have an impact on us as U.S. producers,” he said.
Mexico was the No. 1 destination for U.S. beef last year. It imported 242,150 tonnes, up 12 percent from the previous year. Canada imported 137,532 tonnes.
Mexico has not released a list of American goods that may be subject to tariffs. Instead, it may close its border, said Woodall.
Trade will stop if Canada enforces a 100 percent tariff, said John Masswohl of the Canadian Cattlemen’s Association.
“There won’t be any U.S. beef or pork exports to Canada,” he said.
Exports contribute about $350 worth of value on a U.S. fed steer, which would drop sharply if nothing moves to these trading partners.
As well, it appears the labels did not perform as expected.
“Proponents of COOL always said if we put a label on the package, consumers would spot it and pay more money for our product in the meat case,” he said.
People may say they want to know the origin, but they tend to buy on price when they make their actual selections at retail, he added.
As well, R-CALF and the National Farmers Union, which lobbied hard for the law to mostly keep out Canadian beef, have lost influence with government.
Voluntary labelling by private companies as a promotion feature has a greater chance of success than a mandatory government program if COOL is overturned, said Woodall.
Meanwhile, Canadian agriculture minister Gerry Ritz said he considers U.S. country-of-origin labelling legislation to be “on life support.”
He is also optimistic that it can be changed before Canada makes good on its plans to impose retaliatory tariffs.
In a media call from Washington, D.C., Feb. 5 , Ritz said he had met with the leaders of the U.S. House and Senate agriculture committees about COOL and discussed its negative effects on Canada’s beef and pork industries as well as the threat it poses to American packers.
“I am very encouraged by recent developments in the U.S. Congress, as they’ve asked (agriculture) secretary Tom Vilsack to report back to them on how to provide a legislative fix to COOL if the U.S. loses the appeal, which everyone believes they will,” said Ritz.
barbara.duckworth@producer.com
