The Senate Agriculture Committee held a hearing Thursday, June 25, entitled, “Country of Origin Labeling (COOL) and Trade retaliation: What’s at stake for America’s farmers, ranchers, businesses, and consumers.” Debated at the hearing was legislation introduced by Ranking Member Debbie Stabenow – (D-MI) that would create a voluntary COOL program at the U.S. Department of Agriculture (USDA) and would repeal mandatory labeling for beef and pork.
Senator Pat Roberts – (R-KS), Chairman of the Agriculture, Forestry, and Nutrition Committee warned, “It doesn’t matter if you’re pro-COOL or anti-COOL, you cannot ignore the fact that retaliation is imminent, and we must avoid it.” He also cited letters received from Canadian and Mexican officials on June 24 stating legislative repeal of the law was the only way for the U.S. to avoid retaliation. Senate Democrats pushed for the committee to wait out the World Trade Organization (WTO) process and attempt to reword the law to conform to WTO requirements before sanctions are brought against the U.S.
The witness testifying were: Barry Carpenter, North American Meat Institute; Craig Hill, American Farm Bureau Federation; Jaret Moyer, Kansas Livestock Association (KLA); Jim Trezise, New York Wine and Grape Foundation; Chris Cuddy, Arthur Daniels Midland, and Leo McDonnell, United States Cattlemen’s Association. The first five witnesses were in agreement that the COOL legislation was unnecessary and deleterious; McDonnell, representing U.S. Cattlemen’s Association (USCA) was in favor of the legislation.
The three meat industry representatives all agreed that Congress’s first priority should be complete repeal of COOL to ensure Canada and Mexico can’t enforce retaliatory measures against the U.S. economy. And any delays associated with Congress working out a legislative compromise on voluntary labeling creates more uncertainty for U.S. producers. “It’s time to go ahead and repeal it and allow industry to realize premiums and not make industry realize cost,” Jaret Moyer, president of the KLA testified. “A purely voluntary label done by industry to realize premiums is a much better way than one brought up through this body.”
Leo McDonnell, executive officer and director emeritus for (USCA), said his organization wanted COOL in order to distinguish U.S. meat from imports. “Half the reason we wanted country-of-origin labeling is because you could [import] a Canadian or Mexican cow, and if they were processed and slaughtered in the U.S., it could be called U.S. beef,” McDonnell said. “There were no definitions for U.S. beef.” McDonnell added that if a voluntary program isn’t included in legislation this time around, it would be a battle to bring it up again. McDonnell saw no reason to repeal the law while Moyer said any form of a COOL program was not worth the risk. The other four witnesses did not oppose a voluntary COOL program but said if such a program is developed, it should be after the full repeal of the law to avoid retaliatory action by Canada and Mexico.
Lawmakers are working on a solution to a World Trade Organization dispute with Canada and Mexico. Stabenow’s bill conflicts with a measure (H.R. 2393) the House passed June 10 by a 300-131 margin, and would repeal COOL rules for beef, pork and chicken and doesn’t contain language on a voluntary labeling program at USDA. House Agriculture Committee Chairman Michael Conaway (R-Texas) has said he doesn’t think the government should get involved in a voluntary COOL program and the industry should create a label if there is demand.
Canada and Mexico have requested a combined $3.2 billion in retaliatory trade measures against the U.S. if COOL isn’t brought into compliance with the WTO decision. Canada would target a variety of U.S. goods, including beef, pork, apples, rice, corn, maple syrup, pasta, wine, jewelry, office chairs, wooden furniture and mattresses. The U.S. objected to those estimates during meetings with the WTO Dispute Settlement Body (DSB), referring the issue to arbitration that delays—by at least another 60 days—Canada and Mexico’s ability to seek sanctions.
The WTO ruled for the fourth time last month that COOL, which requires meat packers to indicate on retail packaging where each animal was born, raised and slaughtered, discriminates against imported cattle and hogs.
