World Trade Organization (WTO) judges have agreed to have a panel decided whether or not the U.S. country of origin labeling law (COOL) is compliant with global trade rules and/or harms agricultural trade, as alleged by both Canada and Mexico.As Jennifer M. Freedman reports for Bloomberg that COOL requires “food processors to identify the countries where cattle, hogs and some fresh produce originate. Canada and Mexico say the provisions impose unfair and unnecessary costs on their exports, reducing their competitiveness.”
Agriculture trade between Canada and the US was worth $35.4 billion in 2008, according to Canada’s trade department. The Canadian Pork Council, a confederation of nine provincial pork industry associates, argues the COOL provisions has caused US companies to stop purchasing Canadian pork and is causing the industry millions of dollars.
Now it is up to the WTO to see if Canada and Mexico have a legitimate claim. The future of COOL may be in jeopardy.
To read the Bloomberg article click here.
Posted: 11/23/09
