USTR Seeks Comments on Canada & Mexico's Additional Request for WTO Consultations on U.S. COOL Requirements
The Office of the U.S. Trade Representative has issued a notice seeking comments on Canada and Mexico's May 7, 2009 request for additional World Trade Organization consultations on certain U.S. mandatory country of origin labeling (COOL) requirements.
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Comments are due by July 1, 2009.
(Consultations between the U.S., Canada and Mexico were held in December 2008 on U.S. mandatory COOL requirements, including provisions in the Agricultural Marketing Act of 1946, as amended by the 2008 Farm Bill and implemented in a U.S. Department of Agriculture (USDA) August 1, 2008 interim final rule.)
Canada and Mexico Question U.S. COOL Final Rule, Voluntary Labeling Request
Canada and Mexico are seeking additional consultations on developments that have taken place since their first request for consultations in December 2008 including:
USDA's January 15, 2009 COOL final rule1 that replaced its August 2008 interim final rule; and
USDA Secretary Vilsack's February 20, 2009 letter regarding implementation of the final rule which invited industry to follow additional voluntary labeling practices.2
Canada, Mexico Allege U.S. COOL Measures Inconsistent with GATT, Etc.
Canada and Mexico allege that the U.S. measures appear to be inconsistent with the certain articles of the General Agreement on Tariffs and Trade 1994 (GATT), the Agreement on Technical Barriers to Trade, the Agreement on the Application of Sanitary and Phytosanitary Measures, and the Agreement on Rules of Origin.
Canada and Mexico further allege that these violations nullify or impair the benefits accruing to them under those Agreements and in the sense of Article XXIII:1(b) of the GATT.
Dispute Settlement Panel May Be Requested if Consultations Fail
The USTR states that if the consultations should fail to resolve the matter and a WTO dispute settlement panel (DSP) is established, such panel would be expected to issue a report on its findings and recommendations within approximately nine months after it is established.
(According to the WTO, consultations are the first step in a WTO dispute. Under WTO rules, parties that do not resolve a matter through consultations within 60 days may request the establishment of a WTO dispute settlement panel.)
1The COOL final rule pertains to the country of origin labeling at retail of muscle cuts and ground beef (including veal), pork, lamb, goat, and chicken; wild and farm-raised fish and shellfish; fresh and frozen fruits and vegetables; peanuts, pecans, macadamia nuts, and ginseng. The final rule adds certain covered commodities and makes changes to certain COOL definitions, regulations on markings, recordkeeping requirements, etc.
2The Secretary suggested that the industry voluntarily adopt certain practices to ensure that consumers are adequately informed about the source of food products, including reflecting production steps on labels of products from multiple countries, etc.
(See ITT's Online Archives or 02/24/09 news, 09022415, for BP summary of USDA's announcement the final rule would take effect March 16, 2009 and Secretary Vilsack's letter suggesting certain additional voluntary compliance by industry.
See ITT's Online Archives or 01/21/09, 08/05/08, 10/07/04, and 10/12/04 news, 09012105, 08080520, 04100715 and 04101220, for BP summaries of final rule and interim final rule.
See ITT's Online Archives or 02/18/09 news, 09021835, for BP summary of Canada and Mexico's first request for consultations.)
USTR contact - Priti Seksaria Agrawal (202) 395-3150
USTR notice (D/Ns WTO/DS384 and WTO/DS386, FR Pub 05/22/09) available at http://edocket.access.gpo.gov/2009/pdf/E9-12004.pdf
WTO dispute summary (Canada) (DS384, updated 01/21/09) available at http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds384_e.htm
WTO dispute summary (Mexico) (DS386, updated 01/21/09) available at http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds386_e.htm