The continuing saga of country-of-origin labelling in the United States could be coming to an end.
A final ruling from the World Trade Organization appellate body was expected May 18 after deadlines for this issue.
Canada and Mexico have gone before the WTO four times to charge that the law violates international trade obligations by discriminating against imports of live cattle and hogs in the U.S. marketplace. They have won every challenge.
“COOL does nothing but create cost and hurt for producers all the way through the chain and creating confusion for consumers,” said Rick Bergman of the Canadian Pork Council.
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A ruling against the U.S. offers two outcomes: it could change the law or face high tariffs on a long list of commodities.
It could take several months before Canada and Mexico could introduce duties while the retaliation amount is arbitrated. The duties, which could be on everything from imported live animals to furniture, would remain until a resolution acceptable to Canada and Mexico was implemented.
The contentious labelling rule was implemented in 2009. It was challenged immediately, and when the WTO ruled in favour of Canada and Mexico, the U.S. changed the wording to more explicitly describe where animals were born, raised and slaughtered.
This amendment was also challenged.
COOL requires imported cattle and hogs to be segregated at U.S. plants at a cost of $45.50 to $59 per head for cattle and $6.90 to $8.50 for hogs, according to a Fraser Institute study.
An economic analysis of COOL for the U.S. Department of Agriculture was released May 1. In it, agricultural economists Glynn Tonsor and Ted Schroeder from Kansas State University and Joe Parcell from the University of Missouri found there is consumer interest in knowing where meat comes from, but the economic benefits are small. There was little to no evidence of an increased consumer demand for beef or pork as a result of COOL requirements.
The law was sold to the American public as a consumer’s right to know, but the study estimated only 16 percent of pork and one-third of beef production was covered by the labelling law because products sold in restaurants are exempt.
