USTR Appeals WTO Panel’s Adverse COOL Meat Labeling Ruling

On March 23, 2012 the U.S. Trade Representative notified the World Trade Organization’s Dispute Settlement Body (DSB) of its decision to appeal an adverse DSB panel ruling against U.S. country of origin labeling (COOL) requirements for retail meat products.

(The panel report, issued on November 18, 2011, ruled largely against U.S. COOL requirements in a dispute brought by Canada (DS384) and Mexico (DS386). In particular, the panel found that, among other things, the COOL measure violates Article 2.1 of the TBT Agreement by according less favorable treatment to imported Canadian cattle and hogs and Mexican cattle than to like domestic products. The Panel also found that the COOL measure does not fulfill its legitimate objective of providing consumers with information on origin, and therefore violates Article 2.2 of the TBT Agreement.)

U.S. Argues COOL Not Detrimental to Imported Livestock; Not Unnecessarily Trade-Restrictive

The U.S. Appellant Submission argues that the COOL measure does not breach article 2.1 of the TBT Agreement (by according less favorable treatment to important Canadian cattle and hogs and Mexican cattle) because it requires meat derived from both imported and domestic livestock to be labeled under the exact set of circumstances; accordingly, the measure itself does not modify the conditions of competition to the detriment of imported livestock.

With respect to the panel’s finding that the COOL measure violates Article 2.2 of the TBT Agreement by failing to fulfill its legitimate objective of providing consumers with information on origin, the USTR’s Submission argues that the DSB Panel failed to answer the central question of the Article 2.2 obligation, which is whether the complainants have proved the COOL measure is more trade-restrictive than necessary.

(See ITT’s Online Archives 11112114 for summary of WTO Panel’s November 2011 ruling in COOL disputes, and 11122112 for summary of 19 senators asking USTR and the U.S. Department of Agriculture to appeal the ruling.)

Full text of U.S. Appellant Submission to the DSB (dated 03/23/12) available here.

Press release by Senator Mike Enzi (R-WY) applauding the USTR’s decision to appeal (dated 03/23/12) available here.

Mexican Secretariat of Economy press release pledging to defend the panel’s decision before the Appellate Body (dated 03/23/12) available here.