WTO Delays Final COOL Rule Deadline

GENEVAAt the joint requests of Canada, Mexico and the United States, World Trade Organization (WTO) members meeting as the Dispute Settlement Body agreed Jan. 5, 2012, to extend the deadline for the adoption or appeal of the panel reports in the case about country of origin labeling (COOL) requirements to March 23, 2012.

In 2009, the U.S. Department of Agriculture (USDA) announced final regulation for the mandatory country of origin labeling (COOL) program required by the 2002 and 2008 farm bills. The rule became effective on March 16, 2009. In late 2009, Canada and Mexico requested the WTO form a dispute-settlement panel to resolve a dispute over the U.S.'s mandatory country-of-origin labeling (COOL) law, which requires firms to track and notify customers of the country of origin of meat and other agricultural products at each major stage of production, including retail. The two countries contended the COOL rule caused a significant drop in U.S. beef and pork imports.

The rule covers muscle cuts and ground beef, lamb, chicken, goat and pork; wild and farm-raised fish and shellfish; perishable agricultural commodities (specifically fresh and frozen fruits and vegetables); macadamia nuts; pecans; ginseng and peanuts.

On Nov. 18, 2011, WTO ruled in support of complaints by Canada and Mexico that U.S. country-of-origin labeling (COOL) labeling on fresh beef and pork violates global trade rules and unjustly harms agricultural commerce.

Under Article 16.4 of the Dispute Settlement Understanding (DSU), the 60-day period within which the DSB is obliged to adopt a panel report that is not appealed would have expired on Jan. 18. The United States, Canada and Mexico jointly requested the DSB adopt draft decisions to extend the 60-day time period to March 23, 2012. The requests were made to take into account the current workload of the Appellate Body. The next regular meeting of the DSB will be held on Jan. 20, 2012.