Bridges Weekly Trade News Digest • Volume 12 • Number 41 • 3rd December 2008

Canada Contests US Labelling Laws at WTO

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Canada has taken the first step in WTO dispute proceedings against US country-of-origin labelling measures for livestock and meat exports.

“While Canada is firmly committed to a cooperative trading relationship, we believe that the country-of-origin legislation is creating undue trade restrictions to the detriment of Canadian exporters,” said Stockwell Day, Canada’s trade minister, in a statement announcing the request for formal WTO consultations Monday. “Under these circumstances, Canada has no choice but to assert its WTO rights in defence of our exports.”

His colleague Gerry Ritz, the agriculture minister, concurred. While “we are committed to a respectful working relationship with our American neighbours,” he said, “these new regulations must not discriminate against Canadian producers.”

The US country-of-origin labelling law, known as COOL, was created to provide additional information on certain products - including beef, lamb, seafood and some other perishables - for consumers as part of the 2002 US Farm Bill.

The mandatory labelling requirements were made more comprehensive in this year’s Farm Bill. For a commodity to be considered as a US product, all production activities have to occur in US territory. Products from of the North American marketplace require information indicating the country in which each stage of production, such as birth, rearing or slaughter, has occurred.

But Ottawa is concerned that COOL imposes additional costs at each phase of the production process for companies using Canadian livestock. For instance, it is now necessary for stock from Canada and that from the US to be segregated at the time of slaughter, in order to identify where they were raised. Additionally, Ottawa fears the measures could lead to restrictive labelling requirements in other countries as well.

Canadian livestock and meat producers have already complained that COOL is hurting exports. According to a 1 December statement by the Canadian Pork Council, since the implementation of the measures on 30 September this year, US hog buyers have announced their intent to curb or even cease purchasing animals born outside of the US.

As per WTO rules, the parties now have 30 days for formal discussion to attempt to resolve the dispute. If consultations fail the matter can be referred to a WTO dispute settlement panel.

ICTSD reporting; “Canada challenges US meat labeling laws at WTO, official says,” BLOOMBERG, 1 December 2008; “Canada hauls US to WTO over beef, pork rules,” THE ASSOCIATED PRESS, 2 December 2008.