The Obama administration Friday appealed a recent World Trade
Organization ruling that would have limited meat-origin labeling,
angering Canadian officials who threatened retaliation for what
they called violations of international trade rules.
The flap is over a multiyear battle between the U.S., Mexico,
and Canada about new rules that would require companies to list the
national origin of beef, pork, and other meats sold in the U.S.
The WTO recently ruled that a 2013 rule from the U.S. Department
of Agriculture that would require these disclosures was
discriminatory, a victory for Canadian and Mexican officials who
wanted to protect their exports.
The U.S. had 60 days to appeal the ruling over its "Country of
Origin Labeling, or "COOL" policy, and this appeal was filed on
Friday, according to the WTO.
No further information about the appeal was available, and an
official from the Office of the U.S. Trade Representative, which
would have filed the appeal, didn't respond to requests for
comment. Canadian officials, however, quickly blasted the U.S.
move.
"Canada fully expected the United States to live up to its
international trade obligations and comply with the WTO ruling,
which reaffirms Canada's long-standing view that the revised U.S.
COOL measure is blatantly protectionist and fails to comply with
the WTO's original ruling against it," Ed Fast and Gerry Ritz,
Canada's ministers of international trade and agriculture, said in
a statement.
Canadian officials have said that the labeling rule would cause
its cattle industry to lose close to $1 billion a year, and they
have threatened to retaliate with tariffs on things like chocolate,
cornflakes, fruit and potatoes in the past.
Relations between Washington and Ottawa have experienced strains
in recent years, dominated by Canada's impatience with the approval
process regarding the Keystone XL project. Other irritants include
Buy America provisions that shut out some Canadian manufacturers
from U.S. infrastructure projects, and a U.S. reluctance to fund a
customs plaza on the U.S. side of a new border crossing between
Detroit and the province of Ontario.
U.S. business groups are split on the labeling rule. Some large
meatpackers oppose the rule, saying it drives up costs and hurts
trade with Canada and Mexico.
"An appeal only continues along the current path and brings us
closer retaliatory tariffs from Canada and Mexico, a path that will
damage our economy and our relationship with our largest trading
partners," said Bob McCan, a Texas cattleman who is president of
the National Cattlemen's Beef Association.
Other agriculture groups, however, supported the appeal, saying
it could help give consumers more information.
"American consumers have been crystal clear that they want to
know where their food comes from and family farmers and ranchers
are proud to provide it," said National Farmers Union President
Roger Johnson. He called the appeal "the right thing to do."
Write to Damian Paletta at damian.paletta@wsj.com and Paul
Vieira at paul.vieira@wsj.com
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