UPDATE 2-U.S. must comply with WTO meat-labeling ruling by May

Tue Dec 4, 2012 12:39pm EST
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* Labeling program ruled unfair to Canada, Mexico meat

* U.S. had asked for until 2014 to comply

By Rod Nickel

Dec 4 (Reuters) - The United States must bring its country-of-origin meat labeling rules into compliance with a earlier World Trade Organization ruling by May 23, 2013, according to a WTO decision on Tuesday, the Canadian government said.

The WTO ruled on June 29 that the U.S. country-of-origin labeling program, known as COOL, unfairly discriminated against Canada and Mexico because it gave less favorable treatment to beef and pork imported from those countries than to U.S. meat.

That decision gave the United States an unspecified amount of time to comply.

The labeling program has led to a sharp reduction in U.S. imports of Canadian pigs and cattle, because it raised costs for U.S. packers by forcing them to segregate those animals from U.S. livestock. Some U.S. groups, however, have said COOL offers consumers valuable information about the origin of their food.

"We expect that the U.S. will bring itself into compliance with its WTO obligations by May 2013 as determined by the arbitrator for the benefit of producers on both sides of the border," Canadian International Trade Minister Ed Fast and Agriculture Minister Gerry Ritz said in a joint statement.

"We are particularly pleased that the arbitrator determined a reasonable period of time close to that proposed by Canada and Mexico, as opposed to the much longer period suggested by the United States."   Continued...