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Mexico and Canada win U.S beef dispute

Tonka

Well-known member
http://eleconomista.com.mx/industrias/2011/11/18/mexico-canada-ganan-eu-disputa-carne
Spanish to English translation

Mexico and Canada win U.S beef dispute
November 18, 2011 - 18:08Credit:
Reuters

Photo: correorevista.com
Geneva .- Canada and Mexico won in the World Trade Organization trade dispute against a U.S. law on the labeling of meat, which could boost shipments of cattle and pigs in that country.

A panel of WTO dispute accepted the claim that U.S. regulations on labeling are too strict , which gives the U.S. won an unfair advantage over its competitors in Mexico and Canada.

The panel found that U.S. rules violate WTO rules on technical barriers to trade.

"The final WTO report marks a clear victory for Canadian cattle producers," said Canadian Agriculture Minister Gerry Ritz. "This is a vital first step on the road to recovery," he said.

The so-called law of country of origin labeling, also known by its English-language follow COOL came into force in 2008, generating a sharp fall in U.S. imports of beef and pork from Canada.

Mexico welcomed the ruling. "The panel acknowledged that the COOL provisions are discriminatory and contrary to the obligation of national treatment, since they generate unfavorable conditions of competition for Mexican exporters," said Mexican Economy Ministry said in a statement.

Mexico is one of the top 10 producers of cattle and calves in the world and is one of the leading suppliers of cattle up to the U.S. market.

In the case of Canadian cattle shipments to the U.S. have fallen more than 40% so far in 2011 for the volume seen three years ago.

Following the ruling of the WTO, the USTR said he considered all options, including an appeal .

The labeling became mandatory after years of debate. American consumers and farm groups supported the move, arguing that consumers should have information to distinguish the goods of U.S. origin in supermarkets.

Opponents felt that it was a protectionist measure that would create problems in production.

If the United States appeals, it would issue a final decision within six months . If you lose, Congress should amend the law or face trade retaliation.

The law states that supermarkets put labels on the origin of beef, pork, lamb and chicken they sell. The rule also applies to seafood, fruits and vegetables, among others.

To be considered of U.S. origin, the meat must come from animals born, raised and slaughtered in the United States. The meat from cattle raised in Mexico or Canada that has been sacrificed in the U.S. is labeled as "mixed origin".

In its complaint, Canada and Mexico said that shipments of cattle to the United States fell sharply after the law took effect.

The largest U.S. farmer group urged the Obama administration to comply with the ruling and withdraw an appeal . According to the guild, importing cattle ranchers have suffered reductions in prices as a result of the law.
 
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