WTO

Johnson Makes Case for COOL

May 5, 2015 By Ron Sylvester Leave a Comment

National Farmers Union President Roger Johnson argued recently in Agri-Pulse that regardless of the upcoming announcement from the World Trade Organization (WTO) on America’s popular labeling law – Country-of-Origin Labeling (COOL) – Congress needs to let the WTO process run its course.

“The announcement from the WTO on this lawsuit is due in just weeks, and we may win. If not, it can still be brought to arbitration. And that’s why it’s important that Congress refrain from making any changes to the popular labeling law until this process has run its course,” notes Johnson in Agri-Pulse. “To do otherwise would not only be unprecedented in U.S. history, but would also be a disservice to consumers who support COOL by a margin of 90 percent, according to decade’s worth of polling.”

Johnson notes that the food labeling movement is no longer confined to the U.S., but now includes the European Union as well. “A few years ago European politicians got an earful when their constituents learned that they were walking around with a stomachful ¾ of horsemeat. Meat from horses labeled as beef was being imported into the European Union (EU), and since strict labeling laws were not in place in one of the world’s most lucrative markets, consumers were tricked into eating something very different than they thought,” he notes.

Johnson notes the next step in the arbitration process, should the WTO rule against America’s consumers and producers in May, is that Canada and Mexico can retaliate against U.S. But the level of retaliation can be subject to arbitration, if requested by the U.S. The level of arbitration is limited to the adverse effects on Canadian and Mexican exports to the U.S.

“Proving COOL has caused economic harm is going to be no small feat for Canada, given the recent study out of Auburn University that found it was the economic collapse of 2008 – not COOL – that caused a dip in Canadian exports to the U.S.,” he notes.

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NFU releases new data showing Canadian claims regarding Country of Origin Labeling bogus

January 26, 2015 By Ron Sylvester Leave a Comment

from the National Farmers Union

Contrary to arguments made by America’s trade competitors to the World Trade Organization (WTO), an economic downturn that sapped consumer demand — not Country-of-Origin Labeling (COOL) — caused decreased demand for cattle imports into to the U.S., according to a new study released last week.

“COOL did not cause the declines in livestock exports to the United States, which largely coincided with a substantial global economic downturn that sapped demand for more expensive meat products,” notes the study, authored by C. Robert Taylor, Ph.D., an Auburn University Alfa Eminent Scholar and Professor.

Canada and Mexico challenged COOL provisions related to muscle cuts of beef at the WTO in 2008, alleging the widely popular labeling law was a trade barrier that compromised their export opportunities and market access to the United States for live cattle and hogs. The cost of implementing COOL, they argued, discouraged U.S. meatpacking and processing companies from purchasing livestock of non-U.S. origin and, as a result, reduced the prices of these livestock exports.

But after close examination of more robust data sources to assess the impact of COOL on market access, the study found:

COOL has not had a significant negative effect on the price paid for imported slaughter cattle relative to comparable domestic cattle. In fact, the fed cattle price basis declined after the law went into effect. “The price basis is lower in the six years since implementation of COOL than it was the preceding four years,” the study notes;
COOL did not negatively impact imports of slaughter cattle. “Qualitative and econometric analysis of Mandatory Price Reporting (MPR) and monthly trade and price data cast considerable doubt on assertions that COOL negatively affected imports of slaughter cattle,” says the study. Failure to recognize the effects of imported and domestic captive supplies of slaughter cattle and beef demand uncertainty, along with other factors, played a larger role in reduced import demand than acknowledged in previous studies.
COOL did not significantly affect imports of feeder cattle. “USDA monthly data on imports of 400-700 lb. cattle did not show COOL having a significant negative effect of imports of feeder cattle from either Canada or Mexico relative to placements in U.S. feedlots,” the study points out.

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NFU Says Congress Shouldn’t Bow to Scare Tactics on COOL

November 1, 2014 By Ron Sylvester Leave a Comment

National Farmers Union (NFU) President Roger Johnson today urged Congress to ignore a recent letter signed by groups who are using scare tactics to derail Country-of-Origin Labeling (COOL), a law popular with both consumers and family farmers alike.

“This letter was organized by groups who have opposed COOL from day one and demonstrates that they understand they have lost the battle over this issue in the public arena,” said Johnson. “We urge Congress to ignore the overblown rhetoric of the letter and stay the course on COOL,” he said.

The letter comes on the heels of a recent World Trade Organization (WTO) ruling that the implementation of the law remains unbalanced between consumer information and production costs and will need further changes. “The WTO has already ruled that the COOL law is compliant and this ruling shows that USDA’s current rule is one more step in the right direction, but may not have gone far enough in providing sufficient information to consumers,” he said. Johnson noted that talk of retaliation is premature and the WTO process required to even consider such actions would likely be a year from concluding. “There is simply no rush to take rash action,” he said.

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NFU: WTO’s Ruling Shows USDA Headed in Right Direction

October 24, 2014 By Ron Sylvester Leave a Comment

National Farmers Union (NFU) President Roger Johnson said that the World Trade Organization’s (WTO) recent ruling on Country-of-Origin Labeling (COOL) clearly shows U.S. Department of Agriculture (USDA) is headed in right direction.

“This ruling demonstrates the legitimate nature of the COOL objective and finds that the current labeling rule is an improvement over the original rule, but it remains unbalanced between consumer information and production costs,” said Johnson. “This decision, as it has been issued, will likely be modified on appeal and NFU strongly urges USTR to appeal the ruling.”

Johnson moderated the panel discussion, and was also joined Danni Beer, president of U.S. Cattleman’s Association, Patrick Woodall, research director at Food & Water Watch, and Lori Wallach, director of Public Citizen’s Global Trade Watch, to discuss the details and implications of the WTO ruling.

On Monday, the WTO released the long-awaited, 200-plus page ruling that found the regulatory goal of COOL was WTO-compliant, and that the new 2013 labels provided better, more accurate information for consumers.

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Montana’s Tester Leading Bipartisan Group Fighting for COOL

February 7, 2013 By Ron Sylvester Leave a Comment

U.S. Sen. Jon Tester (D-MT)

Senators Jon Tester (D-Mont.), Mike Enzi (R-Wyo.), and Tim Johnson (D-S.D.) are leading a bipartisan coalition of Senators in calling on the U.S. Department of Agriculture and the U.S. Trade Representative to work with consumers, ranchers and meatpackers to make sure that American families know where their meat comes from.

The National Farmers Union is commending the group for fighting for consumers’ right to know and American farmers.

“We thank Senator Tester for his work in garnering support in the Senate in regards to COOL compliance,” said NFU President Roger Johnson. “Consumers have a right to know where their food comes from and U.S. farmers and ranchers want to be able to tell them.”

The World Trade Organization (WTO) recently required the USDA to adjust its rules requiring American retailers to clearly label where meat was raised and processed. The WTO said that while the United States can require meat labeling, current U.S. Country-of-Origin labeling (COOL) rules do not meet WTO standards. The WTO has given the United States until May 23, 2013, to bring its COOL rules into compliance.

“USDA and USTR should take even stronger regulatory actions to make sure that COOL provides meaningful information about the origins of meat and other products,” said Johnson.

“Congress intended that COOL provide as much information as possible about the origin of all meat cuts to consumers,” the senators wrote to U.S. Secretary of Agriculture Tom Vilsack and U.S. Trade Representative Ron Kirk. “Some flexibility is needed, but such flexibility cannot come at the expense of providing reliable information to families about the national origin of meat products.”

The bipartisan coalition also said that USDA should host a public comment period to allow agriculture workers and consumers to weigh in on any new proposals.

NFU working on preserving effective Country of Origin Labeling in wake of WTO Ruling

December 5, 2012 By Ron Sylvester Leave a Comment

from The National Farmers Union

WASHINGTON – The World Trade Organization has given the United States until May 23, 2013, to bring its Country-of-Origin Labeling (COOL) rules into compliance with a WTO ruling.

“NFU will continue to work with United States Department of Agriculture (USDA) and the Office of the United States Trade Representative to ensure that new rules for COOL fit with the WTO’s ruling and with consumer demand for more information about the origins of their food,” said National Farmers Union (NFU) President Roger Johnson.

The labeling law was passed as a part of the Farm Security and Rural Investment Act of 2002 and amended in 2008, requiring retailers to notify their customers of the source of certain foods. After COOL was implemented, Canada and Mexico filed a complaint against the United States’ law. A WTO ruling in June agreed in part with the complaint, stating that the way by which the law was implemented discriminated against imported meat products, but did not find fault with the law itself.

“NFU has a proud record of supporting COOL. We were instrumental in getting the COOL laws passed in 2002 and again in 2008 and will continue to support its implementation in a way that meets the requirements of the WTO.”

According to the USDA Economic Research Service, food imports have consistently increased since 1990.

“Consumers want and have the right to know from where their meat comes from. We will continue to vigorously defend the COOL law, which was upheld in June. Only the rules that were issued to implement COOL law are in question and can be adjusted.”

NATIONAL FARMERS UNION

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