During a special session of the World Trade Organization's ("WTO") Dispute Settlement Body, the United States formally opposed Canada's bid for US$2.5 billion in annual retaliatory tariffs. Canada is imposing the tariffs in response to USDA's controversial country-of-origin meat labeling ("COOL") requirements, an effort to help consumers make informed choices by requiring producers to label beef, pork, chicken, and other meat products to reveal where the animals were born. The WTO recently found the requirements in the final rule, issued in May 2013, to violate global trade rules, specifically discriminating against Canadian and Mexican producers. Now that the United States has exhausted the appeals process, it must either repeal the COOL rules or face tariffs from Canada and Mexico on various products. During last week's arbitration, the United States told the WTO that Canada's request was excessive when compared to actual costs triggered from the COOL labeling. The arbitration will continue, with Canada reiterating its demand for the United States to bring its meat labeling regime into compliance with WTO rules. This process is already underway in Congress. On June 11, 2015, the House voted 300 to 131 to repeal the COOL labels, but the Senate has instead indicated a preference for altering the rules to remove their discriminatory effects.
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