CFA welcomes appointment of WTO Country-of-Origin Labelling dispute panel

The Canadian Federation of Agriculture (CFA) welcomes this week’s appointment of members to the WTO dispute panel on Country-of-Origin labelling (COOL). The announcement follows the 2009 decision to establish a WTO dispute settlement panel to address the situation facing livestock producers adversely affected by COOL regulations .

“Canadian livestock producers are suffering because of complex and unfair mandatory labeling rules due to recent updates to COOL regulations,” said CFA President Laurent Pellerin. “We are grateful that the government has taken action on the matter and that farmers are now a step closer to a decision in the dispute.”

The panel will determine whether the COOL measures are in line with the United States’ international trade obligations. On May 10, 2010, the WTO Director-General appointed the members of the panel: Christian Haeberli as Chair, and panellists Manzoor Ahmad and Joao Magalhaes. Agriculture and Agri-Food Canada officials expect the panel to issue its decision later this year. The Mexican government has also initiated a dispute claim at the WTO.

In general, mandatory Country-of-Origin Labelling (mCOOL) requires beef, pork and other meats sold in U.S. retail stores to be labelled with the country where the animal was born; requiring U.S. ranchers and meat packers to handle Canadian cattle separately from U.S. cattle. In March 2009, however, the U.S. government announced additional requirements: labels must now show where animal was born, where it was raised, and where it was slaughtered. The result of the new requirements is an excessively onerous system for both our exporters and U.S. buyers, resulting in a hindrance to trade and major income losses for Canadian livestock farmers.

“The CFA and its members will continue working in partnership with governments to develop effective solutions that will assist livestock farmers. They represent a vital component of our rural communities and are of tremendous value to the overall Canadian economy,” said Pellerin.