US Temporarily Blocks Requests for WTO Panel

Farm Futures reports that while the United States successfully blocked the requests from Canada and Mexico for a World Trade Organization (WTO) dispute settlement panel, the request will go through next month. The panel is being requested to look at the US’s country- of- origin labeling (COOL) rules. Under WTO guidelines “the plaintiff in a dispute can reject the first request for a panel,” but the US can not block the request again.

Both Canada and Mexico argue that the COOL rules are an impediment to trade in North America. The argument the countries are making is that the rules discourage US companies, from retailers to processors, from purchasing foreign livestock and meat, which they argue is having a significant impact on exporters of beef, pork, and cattle. For their part the US says it believes the rules are “in line with WTO rules.”

Either way, the panel is expected to meet in the coming month to rule on the issue and both sides are preparing their arguments.

To read the Farm Futures report click here.

Posted: 10/29/09