Canada Enlists WTO Help In US COOL Dispute

The Canadian Government has again asked the World Trade Organization (COOL) to look into the US' Country of Origin Labeling system.

According to a statement issued by International Trade Minister Ed Fast and Agriculture Minister Gerry Ritz, the US Government continues to engage in unfair, protectionist, trade practices that are detrimental to Canadian industry and jobs. The ministers said that while they had hoped to "avoid having to again resort to the WTO to resolve this matter," they have now asked for a WTO compliance panel to be set up.

The Canadian and US Governments have been locked in this dispute since the controversial COOL measure was introduced in 2008. Within three months of its implementation, Canada requested WTO consultations with the US. The talks did not prove successful, and a WTO panel was summoned in October, 2009. It reported back two years later, and ruled that COOL discriminated against foreign livestock and did not fulfill its stated objective.

The US appealed, but in July, 2012, the WTO announced that it was upholding its original decision, albeit with the caveat that there was insufficient evidence to determine whether COOL is more trade restrictive than necessary.

In spite of these developments, the Canadian Government continues to maintain that the US has failed to bring COOL into conformity with its WTO obligations. Its latest move follows up on warnings made by Fast and Ritz in June that they were prepared to "launch the next phase" of the WTO dispute settlement process. They released a list of US commodities that were being considered for "possible retaliation."

"Our government, with the full support and active engagement of the Canadian industry, will continue to fight against this unfair treatment, which is also hurting US industry and consumers. We continue to consult with stakeholders as we pursue a fair resolution of this issue. To respect Canada's WTO obligations, our government will not act on retaliatory measures until the WTO authorizes us to do so," the ministers stressed.

August 22, 2013

Source: Tax News