The World Trade Organization has set Feb. 18 and 19 in
Geneva for hearings into Canada’s complaints about the new set of
Country-of-Origin labeling (COOL) regulations adopted by the United States late
last year.
The WTO ruled that an earlier set of U.S. COOL regulations
amounted to an illegal trade barrier to cattle and hogs from Canada and Mexico.
Canadians, Mexicans and U.S. meat packers say the new COOL
regulations are even worse, meaning that U.S. buyers face more expensive
requirements if they buy livestock born outside of the U.S.
That depresses the price of cattle and hogs in Canada and
Mexico.
Canadian hog and cattle farmers have hired companies to
determine how much COOL is costing them and the estimates under the previous
regulations is more than $1.6 billion a year.
If the WTO rules in Canada’s favour, the U.S. will have an
opportunity to change its regulations. If not, the WTO will likely give Canada
permission to apply tariffs to U.S. goods.
There are political moves underway in the U.S. to scrap or
change the COOL regulations. One is a move from Congress to deny the U.S.
Department of Agriculture the money it needs to implement and enforce COOL.
Another initiative is to add a clause to the five-year Farm
Bill that has been under negotiation for more than a year.
