Government takes next step to WTO for COOL consultations

(Ottawa) May 8, 2009 – Merv Tweed, MP for Brandon-Souris announced the Government of Canada is taking action to formally reach a binding settlement in the dispute with the United States’ Country of Origin Label (COOL) measures.

Canada’s Ministers of Agriculture and International Trade are asking the World Trade Organization (WTO) to become involved in consultation to force the agreed-upon ‘Final Rule’ that relaxed some of the stringent guidelines within the original COOL regulations earlier this year.  This action has been deemed necessary following a directive from U.S. Secretary of Agriculture in February to the U.S. industry, encouraging the use of stricter and broader labeling practices.

“Our livestock industry is being negatively impacted and we are taking the next step to ensure they are treated fairly,” said Tweed.  “Our industry is feeling the impact on the actions of the US Agriculture Department to remove the flexibility in the labelling practices agreed to earlier this year.”

WTO consultations provide parties with an opportunity to resolve a dispute through discussions. If consultations fail to resolve the matter, the Government of Canada is prepared to have the matter referred to a WTO dispute settlement panel.  

“We are standing up for Canadian producers as we always have, and always will,” said Tweed.