U.S. appeals WTO decision that declared its meat labelling rules illegal

The United States Government notified the World Trade Organization's (WTO) Dispute Settlement Body of its decision to appeal the November 2011 panel reports which determined that the U.S. country of origin labeling rules (COOL) for meat violate global trade rules.

The WTO dispute settlement panel had been established in November 2009 to hear Canada and Mexico's challenge to the U.S. legislation imposing mandatory country-of-origin labelling for beef, pork, lamb, chicken and goat meat, and certain perishable commodities sold at retail outlets in the U.S.

According to the U.S. rules, in order for meat to be labelled as a product of the U.S., all production activities (birth, rearing and slaughtering) have to occur in the U.S. For meat derived from animals of different national origins, the label must indicate the country or countries involved at each step, from the animal's birth to the final retail wrapping of meat cuts.

In contesting the U.S. rules Canada claimed that, in the context of the integrated North American beef and pork supply chains, U.S. COOL has resulted in additional and unnecessary costs being imposed on Canadian cattle and hog exports. Under the rules U.S. processors, for instance, have to segregate Canadian animals and the meat from these animals at their facilities, which generates additional costs. Because of these additional costs, some processors no longer buy Canadian animals, buy them only on certain days, or buy them at a discounted price. Thirteen WTO country members have joined as third parties in the dispute.

"The WTO panel decision recognized the integrated nature of the North American supply chain and marked a clear win for our industry," Canadian Agriculture Minister Gerry Ritz said in a statement expressing disappointment with the U.S. appeal.

Parties to a WTO dispute can appeal a panel's ruling. Appeals have to be based on points of law, such as legal interpretation - they cannot re-open factual findings made by the panel. Each appeal is heard by three members of a permanent seven-member Appellate Body comprising persons of recognized authority and unaffiliated with any government.

Generally, the Appellate Body has up to 3 months to conclude its report.


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