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Agriculture and Agri-Food Minister Gerry Ritz expressed confidence that Canada will win its WTO challenge on the US COOL issue. (Photo: Agr.gc.ca)
WTO to handle origin labelling dispute
UNITED STATES
Thursday, November 26, 2009, 00:40 (GMT + 9)
The World Trade Organization (WTO) will take over the ongoing quarrel over whether US country of origin labelling (COOL) violates international trade agreements, as alleged by Canada and Mexico.
Canada asked the WTO to become involved last December to issue judgment on its claims that the COOL system has thwarted its export market. Under this system, US meat processors must handle and label Canadian products separately – which often results in processors excluding Canadian products altogether.
Canadian producers also claim the rules have resulted in a surplus at local markets and consequently lower prices, Meat Process reports.
The US blocked Canada’s first request for a WTO panel to be set up on 23 October. The second request, though, was presented on Thursday and was accepted because the formation of a panel can only be blocked once under WTO rules.
It is expected that the WTO panel will issue its report in summer or fall 2010. But while the WTO can authorise commercial sanctions against countries that ignore the rules, it cannot force compliance with its rulings.
“This government puts farmers first and will continue to fight for fair and unfettered access for our Canadian producers and exporters. We are confident that we will win our challenge,” Canada’s agricultural minister Gerry Ritz stated.
In turn, the US government claims the rules provide American consumers with transparency. It released a statement on Tuesday expressing “disappointment” at the panel’s establishment.
“We are confident that our measures provide information to consumers in a manner consistent with our WTO commitments,” the statement reads.
COOL applies to wild and farm-raised fish, perishable agricultural commodities, beef, pork and other products.
Related article:
- US blocks formation of WTO panel
By Natalia Real
editorial@fis.com
www.fis.com
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