Appeals Court Won’t Tamper With COOL, But Keeping It Could Be Costly

BY NEWS DESK | NOVEMBER 1, 2014

Another day, another ruling on the so-called country-of-origin labeling (COOL) of muscle cuts of meat.

The latest is a decision by the U.S Court of Appeals for the District of Columbia Circuit not to rehear the dispute. That means, unless the U.S. Supreme Court takes up the issue, that domestic courts are fine with U.S. Department of Agriculture rules that require producers to keep track and report on the label on the birthplace, residence, and location at passing for each hunk of meat sold at retail in the U.S. regardless of the burden or cost.

However, the World Trade Organization sees those very provisions as illegal non-tariff barriers to trade. Canada and Mexico recently won another round of WTO rulings that many manufacturers and agricultural interests fear will allow those countries to impose crippling retaliatory tariffs on U.S. exports.

It means instead of just being a regulatory cost falling on the meat industry and its consumers, COOL could result in Canada and Mexico being able to collect billions of dollars of extra tariffs or taxes from a wide variety of U.S. industries.

WTO may impose such tariffs to punish countries that violate their trade agreements.

That’s caused a broad coalition of the U.S. manufacturing and agricultural industry to begin lobbying Congress for changes that to make COOL WTO compliant before early next year when those tariffs might become a reality.

Original supporters of COOL, including the Farm Bureau and United Stockgrowers of America, are buoyed by its support from domestic judges and oppose changes to accommodate WTO.