Mandatory Country of Origin Labelling
Updated: November 20, 2009
WTO Process on COOL Moving Forward
On November 19th, the Government of Canada announced that the World Trade Organization has approved Canada’s second request for the formation of a dispute settlement panel on U.S. Country of Origin Labeling. The initial request for a dispute settlement panel, made on October 7th, was vetoed by the U.S.
The WTO process began in December 2008, with an initial request by Canada for consultations with the U.S. to discuss the Interim Final Rule for COOL. A second round of consultations was held in June and covered the Interim Final Rule, the Final Rule and a letter from Agriculture Secretary Tom Vilsack that asked U.S. processors to comply with stricter COOL standards than what is outlined in the Final Rule.
A dispute settlement panel is responsible for determining whether COOL is consistent with U.S. international trade obligations under the WTO. The three-member panel for COOL cannot include members from Canada, the U.S. or Mexico as these countries are directly involved in the WTO challenge. It can take up to nine months from the establishment of a panel for its final report to be released to WTO members and the final report on COOL is expected around summer or fall of 2010.
Ontario Pork is continuing work with the Canadian Pork Council and other Canadian pork organizations to document evidence of harm to the pork industry as a result of COOL. Any evidence of harm will be forwarded to the Government of Canada.
Background
Mandatory Country of Origin Labelling (COOL) was implemented in the U.S. on September 30th, 2008 under an Interim Final Rule. The rule will be enforced at the retail level, requiring retailers to label covered commodities according to their country of origin. Commodities affected by the current rule include muscle cuts of pork, beef/veal, lamb, goat and chicken; ground pork, ground beef, ground lamb, ground goat, and ground chicken; fish and shellfish; perishable agricultural commodities; peanuts; ginseng, pecans and macadamia nuts. Processed foods are exempt from COOL, as are foods sold in the food service (restaurant) industry.
COOL Final Rule Issued
On January 12th, the USDA issued an advance Federal Register notice of the Final Rule for COOL. This Final Rule was published on January 15th and implemented 60 days following publication, on March 16th, 2009.
Implementation of COOL
Although COOL was implemented as originally outlined in the Final Rule on March 16th, USDA Agriculture Secretary Tom Vilsack sent a letter to U.S. Industry Representatives in conjunction with this implementation. Vilsack is asking that processors voluntarily comply with stricter COOL standards than what is outlined within the Final Rule. Specifically, Vilsack is asking processors to adhere to the following guidelines:
(1) “voluntarily include information about what production step occurred in each country when multiple countries appear on the label”;
(2) extend COOL to processed products (ones subject to curing, cooking, smoking, etc.); and
(3) a reduction in the inventory allowance for ground meat from 60 to 10 days.
The USDA has indicated that it will monitor industry compliance with COOL as well as industry performance in relation to the voluntary guidelines suggested by Vilsack. This monitoring will help the USDA to decide whether modifications to the COOL Rule are necessary.
What does COOL mean for producers?
Producers shipping directly to a U.S. processor on contract should have received documentation forms from the plant that will be required for future swine shipments. The documentation will serve as proof of origin. For producers whose hogs are shipped to the U.S. on Pool loads, Ontario Pork will be responsible for providing origin documentation on behalf of these producers.
Label Requirements
Requirements for labeling muscle cuts of pork (and other meats) are broken into four categories, outlined below. The ‘label notation’ column designates the acceptable label for each category of meat, as the label will change depending on whether product has been mixed with meat products from other categories. The label for non-mixed meat for each category is noted in bold font.
|
Category |
Product derived from livestock: |
Label notation |
|
A |
U.S. Country of Origin |
Born, raised and slaughtered in the U.S. |
“Product of U.S.”
“Product of U.S. and Canada”
“Product of Canada and U.S.” |
|
B |
Multiple Countries of Origin |
Born in Canada, raised and slaughtered in the U.S., from animals imported not for immediate slaughter (weaner pigs) |
“Product of U.S. and Canada”
“Product of Canada and U.S.” |
|
C |
Imported for Immediate Slaughter |
Born and raised in Canada, slaughtered in the U.S., from animals imported for immediate slaughter (market hogs) |
“Product of Canada and U.S.”
“Product of U.S. and Canada” |
|
D |
Foreign Country of Origin |
Product from animals born, raised and slaughtered in a country other than the U.S. |
“Product of Canada” |
| COOL NEWS AND UPDATES |
| DATE |
TITLE |
| November 20, 2009 |
WTO to Hear Canada's Challenge to U.S. Mandatory Country-of-Origin Labelling |
| November 5, 2009 |
Request for Evidence from Producers |
| October 7, 2009 |
CPC Welcomes Decision to Proceed with WTO Dispute Settlement Panel on US COOL |
| October 7, 2009 |
Canada Requests WTO Panel on U.S. Mandatory Country-of-Origin Labelling |
| January 12, 2009 |
USDA Issues Final Rule on Mandatory Country of Origin Labeling, USDA Press Release |
| January 12, 2009 |
Advance Federal Register notice of the Final COOL rule to be published on January 15th |
| January 12, 2009 |
Canadian Pork Producers Cautiously Optimistic Regarding COOL Final Rule, CPC Press Release |
| January 12, 2009 |
Canadian Cattle Producers See Some Improvement in COOL Final Rule, Canadian Cattlemen’s Association Press Release |
| January 12, 2009 |
Government of Canada Responds to U.S. Country of Origin Labelling Measures, Government of Canada Press Release |
| February 20, 2009 |
USDA Agriculture Secretary Vilsack’s Letter to Industry |
| February 20, 2009 |
Vilsack Announces Implementation of COOL, USDA Press Release |
| December 1, 2008 |
Government of Canada to Begin Formal WTO Consultations on U.S. Country-of-Origin Labelling |
| December 1, 2008 |
Canadian Pork Producers Welcome WTO Consultation Request on U.S. COOL |