US Congress Repeals Country of Origin Labelling Law

A looming trade war that would have pitted Canada against the United States was avoided last Friday after a voluminous budget bill which contained a rider repealing the meat labelling law, also known as the Country of Origin Labelling or COOL, was passed by Congress, The Star writes. The passed bill is now awaiting for the signature of President Barack Obama for it to be passed into law.

The World Trade Organization (WTO) earlier this year ruled that the COOL breached international trade rules, which lead it to grant Canada and Mexico the right to enforce US$ 1 billion in tariffs on U.S. products as retaliation.

On the outside, the COOL informed U.S. consumers the origins of the meat they're buying, but Canada and Mexico see the law as a protectionist measure that discriminates against their products, the Global News adds. Because of the added costs of sorting non-U.S. meat products, several American packing facilities refused to accept Canadian meat products.

Some of the products that were under the scope of the COOL were pork, beef, maple syrup, office chairs, and jewelry among others.

International Trade Minister Chrystia Freeland called the COOL scrapping a "win for Canada," which would have instant positive effects on the Canadian economy.

Despite the victory, however, Freeland said that Canada will push through with obtaining authorization on imposing the tariffs, writes the Financial Spots, because it was only after the US was pressured by the WTO that they agree to scrap the COOL. Otherwise, it would have had devastating effects on pork producers, though Canada has no plans to implement the tariffs. Freeland says that "it is prudent" to see the legal process through "to its formal, technical conclusion."

Senator Pat Roberts, the chair of the U.S. Senate Agriculture committee lauded the repeal, saying that "every state had something to lose from keeping mandatory COOL intact."