The US country-of-origin labelling (COOL) requirements for livestock and meat
imports are inconsistent with international trade rules, the WTO’s highest
court said on 29 June 2012 (DS384,
386).
The highly-anticipated ruling, which stemmed from a dispute launched by Canada
and Mexico in 2008, found that the US measure put foreign products at a
disadvantage by making the processing of imported livestock prohibitively
costly. The judges, however, disagreed that the measure was also more trade
restrictive than necessary to achieve the legitimate objective of consumer
information.
Beef and pork producers in
both countries similarly welcomed the ruling, noting that it would likely ease
the economic situation of the North American meat market. “COOL has affected
billions of dollars of commerce in cattle and beef products since it was
implemented in 2008,” the Canadian Cattleman’s Association (CCA) said.
“At a cost of [C]$25 to [C]$40 per head, the current
impact of COOL to Canadian producers is approximately [C]$150 million per
year.” [C$1 = US$1.01]