WTO to rule on origin labelling spat

Canadian and Mexican suppliers claim country of origin labelling in the US is having a negative impact on their exports

The World Trade Organization (WTO) has reportedly agreed to rule on the ongoing dispute over whether US country of origin labelling (COOL) violates international trade agreements, as alleged by Canada and Mexico, according to a report by Food Navigator.

According to Canadian officials, the COOL system has damaged its export market because importers and processors are less willing to handle and label Canadian products separately, causing a glut on the domestic market, the report said.

Canada requested that WTO become involved in the spat in December, after the US blocked its first request on 23 October.

The second request was accepted on Thursday 19 November, with the panel expected to present its report in the summer or fall of 2010, according to Food Navigator.

Although the WTO cannot force compliance with its rulings, it can authorise commercial sanctions against countries that ignore the rules.

COOL requires origin labeling in the US of meat, fish and poultry products as well as some fresh produce and perishable agricultural commodities such as ginseng, macadamias, pecans and peanuts.