Industry News - PM

WTO COOL decision fuels meat groups’ frustration; all eyes on Senate


By Rita Jane Gabbett on 12/7/2015

Groups representing the U.S. animal protein industries, which have opposed the U.S. country of origin labeling laws since they went into effect in 2009, reacted to the latest blow to the law this morning when the World Trade Organization approved retaliatory tariffs against U.S. products.

“As Christmas approaches the U.S. today got another well-deserved lump of coal from the World Trade Organization (WTO) when that organization found that Canada and Mexico can impose more than $1 billion in retaliatory tariffs because of the burdensome and discriminatory mandatory country of origin labeling (COOL) rule,” said North American Meat Institute President and CEO Barry Carpenter. “The only way to remove this lump of coal in the United States’ Christmas stocking is swift repeal of mandatory COOL.”

The House of Representatives in June voted to repeal the COOL meat labeling provisions, but the Senate has yet to act on the matter. Some industry observers have speculated the WTO move might spur the Senate to act quickly.

“The operative word is ‘quickly’ as Canada and Mexico may start imposing tariffs before the end of the year,” warned livestock analysts in the Daily Livestock Report.

“If the Senate does not act, U.S. beef exports will face a 100 percent tariff in these countries, severely diminishing about $2 billion of beef exports annually,” warned National Cattlemen’s Beef Association President Philip Ellis.

According to the DLR, one third of all U.S. beef exports go to Canada and Mexico. The latest annual data shows in 2014 the U.S. exported 364 million pounds of beef to Canada and 435 million pounds of beef to Mexico. 

Chicken producers are also nervous.

“I am keenly aware that chicken and fowl could be at the top of the list for retaliation by Canada and Mexico, and that this labeling law continues to leave the door open for retaliatory action by other countries, too,” said National Chicken Council President Mike Brown. “NCC supports legislative action that will bring U.S. laws and regulations pertaining to meat and poultry into full compliance with our international trade obligations.  NCC urges Congress to repeal the labeling provision for chicken, beef and pork now.”

One aspect that might spur Senate action is that the retaliation will also extend far beyond the poultry and meat industry.

Canada's preliminary list includes pork, beef, wine, furniture, and a number of other products. Mexico has not released a list yet.

“Soon, a host of industries, ranging from cherry producers to maple syrup processors to wooden furniture and mattress makers, could pay the penalties for this debacle created by some anti-trade organizations who fought for the law,” warned Carpenter.

U.S. Senator Pat Roberts (R-Kan.), chairman of the Senate Committee on Agriculture, Nutrition and Forestry, issued a statement again calling for Senate action to repeal COOL.

“How much longer are we going to keep pretending retaliation isn’t happening? Does it happen when a cattle rancher, or even a furniture maker, is forced out of business? We must prevent retaliation, and we must do it now before these sanctions take effect. I will continue to look for all legislative opportunities to repeal COOL,” said Roberts in a statement.

The National Association of State Departments of Agriculture also called for the Senate to act.

The National Pork Producers Council has also long been a vocal opponent of the COOL labeling law. According to Iowa State University economist Dermot Hayes, the average U.S. pork producer currently is losing money on each hog marketed, and retaliation from Canada and Mexico against U.S. pork would exacerbate those losses.

United States Cattlemen’s Association (USCA) President Danni Beer, however, urged lawmakers and cattle producers to continue to stand strong in their support of COOL. The cattle producer group has long been a strong supporter of the law.

“USCA is committed to exhausting all efforts on this issue and remain supportive of the Stabenow-Hoeven approach to COOL which is still on the table. The voluntary option on COOL provides a common sense solution to COOL. The ability to maintain the integrity of COOL while adhering to WTO parameters is a workable solution for U.S., Mexico and Canada cattle producers,” said Beer.


 
Loading Comments