A World Trade Organization (WTO) dispute panel ruled that U.S. Country of Origin Labeling (COOL) regulations for meats are not in compliance with international trade obligations, setting in motion the potential for billions in economic retaliation by Canada and Mexico, according to AgriPulse.
The appellate panel upheld previous rulings that the amended COOL rule did indeed unfairly discriminate against Canadian and Mexican livestock by requiring labels of muscle cuts of meat to state where the meat-producing animal was born, raised and slaughtered.
The panel also reversed a previous decision that Canada and Mexico failed to make a “prima facie”—a legal term equating to correct until proven otherwise—case showing that less trade-restrictive measures comparative to the consumer information desires of COOL were readily available.
Canada and Mexico will now likely begin the process of economic retaliation, barring any action in the U.S. Congress to repeal the law.