USTR Seeks Comments on WTO Panel to Examine U.S. COOL Labeling Complaints by Canada & Mexico
The Office of the U.S. Trade Representative is seeking comments on the World Trade Organization's recent establishment of a dispute settlement panel to examine complaints by Canada and Mexico regarding U.S. mandatory country of origin labeling (COOL) requirements for meat and other agricultural commodities.
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USTR invites comments on the issues raised in these disputes by January 8, 2010.
(U.S. COOL labeling regulations require certain tracking and recordkeeping by suppliers and require retailers to inform consumers of the country of origin for the following commodities: muscle cuts of beef (including veal), lamb, chicken, goat, and pork; ground beef, ground lamb, ground chicken, ground goat, and ground pork; wild and farm raised fish and shellfish; perishable agricultural commodities; macadamia nuts, pecans, and peanuts; and ginseng.)
Canada & Mexico Challenge COOL Regulations, USDA Letter to Industry, Etc.
In their requests to establish a panel, Canada and Mexico challenged provisions of the Agricultural Marketing Act of 1946, as amended by the 2002 and 2008 Farm Bills; the U.S. Department of Agriculture's August 2008 Interim Final Rule1 and January 2009 Final Rule on COOL3; and a February 2009 letter3 by the Secretary of Agriculture to industry requesting certain voluntary compliance.
Allege U.S. COOL Labeling Violates GATT, Rules of Origin Agreement, Etc.
Canada and Mexico allege that the COOL requirements are inconsistent with various articles of the General Agreement on Tariffs and Trade 1994, the Agreement on Technical Barriers to Trade (or alternatively, the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement)), and the Agreement on Rules of Origin.
Additionally, Canada and Mexico allege that these violations nullify or impair the benefits accruing to them under those Agreements and further appear to nullify or impair the benefits accruing to them in the sense of GATT 1994, Article XXIII:1(b).
Panel Expected to Issue Report Within 9 Months
According to the USTR, dispute settlement panels are expected to issue reports on their findings and recommendations within approximately nine months after they are established.
(See USTR notice for requirements for the submission of comments.)
1The August 2008 interim final rule required COOL labeling and certain supplier requirements, effective September 30, 2008, for the following "covered commodities": muscle cuts of beef (including veal), lamb, chicken, goat, and pork; ground beef, ground lamb, ground chicken, ground goat, and ground pork; perishable agricultural commodities; macadamia nuts, pecans, and peanuts; and ginseng. (See ITT's Online Archives or 08/04/08 and 08/05/08 news, 08080420 and 08080520, for BP summaries.)
2The January 2009 final rule, which was effective March 16, 2009, continued the COOL requirements of the interim final rule described above and an October 2004 interim final rule on COOL labeling for wild and farm raised fish and shellfish. It also made changes to certain COOL definitions, regulations on markings, recordkeeping requirements, etc. that superseded the two interim final rules. (See ITT's Online Archives or 01/21/09 news, 09012105, for BP summary.)
3In February 2009, USDA Secretary Vilsack sent a letter to industry suggesting they voluntarily adopt certain labeling and reductions in inventory allowance. (See ITT's Online Archives or 02/24/09 news, 09022415, for BP summary.)
(See ITT's Online Archives or 10/09/09 news, 09100920, for BP summary of Canada's request for a WTO panel.
See ITT's Online Archives or 05/22/09 and 02/18/09 news, 09052220 and 09021835, for BP summaries of USTR seeking comments on Canada & Mexico's requests for consultations.)
USTR contact - Probir Mehta (202) 395-3150
USTR notice (D/N WTO/DS384 and WTO/DS386, FR Pub 12/04/09) available at http://edocket.access.gpo.gov/2009/pdf/E9-28904.pdf