Farms.com Home   Ag Industry News

WTO says U.S.A. could face $1 billion in trade penalties

Decision is in relation to COOL legislation

By Diego Flammini, Farms.com

Another decision in the COOL (Country Of Origin Labeling) situation could see the United States face up to $1 billion in penalties from their Mexican and Canadian trade partners.

Country of origin labeling requires packaged meats to specify where the animals were born, raised and slaughtered. The practice has an estimated economic impact of $1 billion according to the Canadian livestock industry.

“Country of origin labelling harms Canadian and Mexican livestock producers as well as U.S. processors and producers,” said Chrystia Freeland, Canadian Minister of International Trade, and Lawrence MacAulay, Canadian Minister of Agriculture in a joint statement. “It also disrupts the highly integrated North American meat industry supply chain.”

The World Trade Organization (WTO) has deemed the practice discriminatory and given Canada and Mexico the authority to apply retaliatory tariffs.

Mexico’s tariffs could total $228 million while Canada’s tariffs can be as high as $1 billion. The Canadian government said if the United States Senate doesn’t repeal COOL for beef and pork in a timely manner, they won’t waste any time putting the tariffs in place.

Tim Reif, general counsel for the Office of the U.S. Trade Representative said the decision is disappointing and could impact future trade between the three countries.

Pat Roberts, U.S. Senate Agriculture Chairman said he will explore every legislative measure to have COOL repealed, saying it’s important to stop the tariffs before they start.

Since 2011 the WTO has ruled that country of origin labeling treats Mexican and Canadian livestock unfairly. On June 10, 2015, the United States House of Representatives repealed COOL. The American Senate has yet to do so.

Join the discussion and tell us your thoughts on the WTO’s recent ruling on COOL.


Trending Video

Unveiling the 2026 John Deere Forage Harvesters: F8 & F9 Series

Video: Unveiling the 2026 John Deere Forage Harvesters: F8 & F9 Series


Look at the all-new John Deere F8 and F9 series self-propelled forage harvesters for 2026!

Explore the advanced technology, including the new G5 display, ground speed automation, active fuel control system, and the upgraded inoculant dosing system for better crop nutrient management.

Learn about the serviceability improvements, including centralized controller access for easy maintenance, and the new extreme kernel processor featuring a 12-inch diameter roll, offering multiple roll configurations.

Shaun Fritchey, product specialist at John Deere, takes you through the key features of these machines.