Industry Pressures COOL Repeal in Testimony to Congress
Congress should quickly repeal country-of-origin labeling requirements to avoid massive retaliatory tariffs expected to follow the World Trade Organization’s upcoming decision in the long-running dispute, said industry and business leaders in testimony before a House Agriculture subcommittee on March 25. Many industry critics previously called for more Agriculture Department authority to reform the COOL regime (see 1411060019), but the “looming” WTO rejection of the U.S. appeal in the case raises concern to critical levels, said the witnesses at the hearing. Canadian and Mexican officials continue to pressure a change in law (see 1502040064).
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
The WTO decision is expected on May 18 and many observers expect another rejection (see 1503090010). “A consensus has emerged that congressional action is required avert retaliation,” said Chris Wenk, executive director of international policy at the U.S. Chamber of Commerce. “The chamber strongly urges Congress to move swiftly to approve legislation repealing the COOL requirements for muscle cuts of meat.” Despite pressure to act on COOL, Congress only directed USDA to report on the labeling rules as part of an appropriations bill signed into law in late 2014 (see 1412170007). The COOL regime forces manufacturers of meat muscle cuts to identify one North American country as the origin of the product.
Lawmakers voiced several concerns with COOL. Subcommittee Chairman David Rouzer, R-N.C., and ranking member Jim Costa, D-Calif., both agreed on the need for repeal, but subcommittee members didn’t indicate support for any specific legislation. The labeling rules have “fractured unnecessarily” North American livestock markets, said full Agriculture Committee Chairman Michael Conaway, R-Texas, at the hearing. Rep. Ted Yoho, R-Fla., called for repeal and urged the U.S. to handle these labeling rules in free trade agreements.
The WTO could authorize retaliation that totals $4 billion and targets agricultural products, said National Pork Producers Council President-elect John Weber. “A WTO panel will ultimately decide the actual number,” Weber said. Linda Dempsey, international economic affairs vice president with the National Association of Manufacturers, said the consequences of retaliation will go beyond tariffs. U.S. companies could lose exporting relationships with Canada and Mexico for years to come, said Dempsey. National Farmers Union President Roger Johnson, a COOL supporter, urged Congress to wait until the WTO decision to consider repeal legislation.