Two major trade groups, the U.S. Chamber of Commerce and the National Association of Manufacturers, told lawmakers that repeal is the only option available in a losing battle over the so-called country of origin labeling (COOL) law. The World Trade Organization has ruled three times against COOL, which requires labels on packages of beef, chicken and pork saying where the animals were born, raised and slaughtered. A decision is expected around May 18 from a final review by a WTO appellate panel. Canada and Mexico could impose retaliatory tariffs if the United States loses and does not alter its rules.
Christopher Wenk, of the Chamber of Commerce, said retaliation could begin 60 days after the final WTO ruling and could affect billions of dollars of U.S. exports. “The only way to avert costly retaliation is for Congress to approve legislation repealing the COOL requirement for muscle cuts of meat,” said Wenk at a House Agriculture subcommittee hearing. The National Pork Producers Council cited estimates that Canada and Mexico each could seek $2 billion or more in penalties. Subcommittee chairman David Rouzier and Agriculture chairman Michael Conaway said lawmakers should be prepared to act quickly.
Roger Johnson, of the National Farmers Union, which supports COOL, warned against panic. Canada and Mexico will have to prove to the WTO the scale of damage from COOL, he said, and “history would prove almost any WTO deadline is not met.”
COOL was enacted in 2002 after years of debate, and finally took effect in 2009. Consumer groups and the largest U.S. farm groups backed it as a way to provide useful information to consumers. Meatpackers and the largest cattle and hog organizations opposed it as an expensive bookkeeping headache.The USDA rewrote the rules in 2013 after losing a WTO case and an appeal. The WTO ruled against the new iteration last fall, and a U.S. appeal is pending. Mexico and Canada say COOL has damaged sales of livestock to U.S. buyers.