
On November 18, 2011, the World Trade Organization (WTO) ruled in favour of Canada and Mexico’s complaint against U.S. Country of Origin Labeling (COOL). The WTO panel report agreed with Canada and Mexico’s assertions, that the implementation of COOL resulted in discrimination to Canadian and Mexican livestock imported into the U.S. Read the full PDF release here.
While winning this case as resoundingly as we have is very gratifying, it is only a means to an end, and not an end in itself. The end goal is to achieve legislative and regulatory changes that will eliminate the discrimination of Canadian cattle in the U.S. market. Since the release of the report, our ongoing advocacy effort in the U.S has focused on encouraging a resolution instead of an appeal and defining what such a resolution would entail. The U.S. has until March 23, 2012 to appeal the WTO ruling.
Under the circumstances of the final interim mCOOL rule, the Canadian government requested formal consultations under the WTO in December, 2008.
Click here to read the full CCA news release on the initial request for WTO consultations.
Formal consultations are the first step that must be taken before requesting the initiation of a trade dispute settlement panel under either the WTO or the North American Free Trade Agreement (NAFTA). The formal consultation period must last a minimum of 60 days before a request for a dispute settlement panel can be made. The first step of the challenge process, WTO consultations are intended to encourage disputing countries to reach a negotiated resolution.
The Government of Mexico initiated its own WTO consultation process on mCOOL. Canada is permitted to participate in the Mexico WTO process.