Agriculture Minister Lyle Stewart welcomes the World Trade Organization (WTO) compliance panel’s final decision on Country of Origin Labelling (COOL). On Monday, May 18, 2015, the WTO again ruled in Canada’s favour urging the U.S. to comply with the WTO rules.
“This final ruling demonstrates the need for the United States to bring COOL in line with its WTO obligations,” Stewart said. “COOL does not address the best interest of the public and it unfairly discriminates against Canadian cattle and hog exports.”
Since COOL was introduced in 2008, Canada’s industry has estimated damages in excess of $1 billion a year due to price declines, lost sales and added costs.
In June 2012 and again in October 2014, the WTO compliance panel ruled in favour of Canada regarding the COOL requirements. The U.S. appealed the most recent ruling, bringing the decision back to the panel. This final ruling gives Canada permission to impose trade retaliations should the U.S. not comply with the ruling. Saskatchewan will continue to support the federal government in pursuing retaliatory tariffs.
“The WTO decision reflects what we’ve said all along,” Stewart said. “COOL is unjustifiable discrimination and we are encouraging the United States to recognize this so we can move forward as unified trade partners.”
Cattle and hog producers in the province will benefit if the U.S. becomes trade compliant. Saskatchewan’s cattle herd is the second largest in the country at nearly 2.9 million head. In addition, Saskatchewan markets around 2.1 million hogs every year.
