Professional Documents
Culture Documents
Labelling Case
International Law
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Table of Contents
1
WTO definition..................................................................................................... 1
2.1
COOL definition.............................................................................................. 1
2.2
Case overview................................................................................................ 1
2.3
2.3.1
Canadian overview..................................................................................2
2.3.2
Mexican Overview................................................................................... 2
2.3.3
US Overview............................................................................................ 2
2.4
Relevant events............................................................................................. 3
2.5
The resolution................................................................................................ 4
Annex................................................................................................................... 5
3.1
3.1.1
3.1.2
Rules of Origin:........................................................................................ 5
3.1.3
3.1.4
Bibliography......................................................................................................... 6
1 WTO DEFINITION
WTO is an Intergovernmental Organization that regulates international trade. It was
established on April 15, 1995 replacing the GATT (General Agreement on Tariffs and
Trade which was created in 1947). It is signed by 125 nations.
2.1 COOL
DEFINITION
2.2 CASE
OVERVIEW
2.3 MAIN
POINTS OF DISCUSSION
2.4 RELEVANT
EVENTS
November 18, 2011 the WTO panel found COOL measure is inconsistent with the US
WTO obligation. It violates ART. 2.1 Of TBT (Technical Barriers to Trade) agreement.
Or alternatively several articles of the Agreements on Sanitary and Phytosanitary
Measures (SPS), as the article 2.2 related to it. The panel also found that A letter
was issued by US secretary of agriculture (Vilsack), Vilsack letter suggestions for
voluntary action went beyond COOLs obligations and, while not a technical
regulation, constitute unreasonable administration of COOL itself, because this is a
violation to the Article X: 3(a) GATT 1994. (See annex to refer art). The resolution is
favorable to Mexico and Canada.
Under WTO rules, the US had various rules: to accept the rule and make changes to
the COOL statute or to appeal the panel report on legal issues. On March 2012, The
US appealed two findings of the DS (Dispute Settlement) panels report to the WTO
Appellate Body (AB).
June 29, 2012 the WTOs Appellate Body (AB) upheld the DS panels finding that
COOL treats imported livestock less favorably than domestic livestock. But the AB
reversed the DS finding that COOL does not fulfill its legitimate objective to provide
consumers with information on origin. AB resolution is referring to TBT 2.2 article
claiming that DS panel interpretation was too narrow.
According to WTO rules, the parties must accept the arbitrators decision as final
and cannot seek a second arbitration.
Once WTO finding are adopted by the DSB, a compliance deadline is established.
After the adoption of the dispute settlement reports, the US had up to 30 days to
inform the DSB of its plans to implement the WTO findings. WTO members are given
approximately one year from the date of adoption of the panel report to comply. If
the disputing countries fail to agree on a compliance deadline, as occurred in this
case, an arbitrator may determine the deadline. US argued 18 months, Canada
argued 6 months and Mexico argued 8. The arbitrator determined from reports
adoption (July 23, 2012) was a reasonable time (until May 23, 2013) for US to
comply.
In order to meet a May 23, 2013, compliance deadline, USDA (United States
Department of Agriculture) issued a revised COOL rule they require that labels show
where each step born, raised, slaughtered and prohibiting the mix meat from
different origins. Canada and Mexico expressed disappointment with USDA revised
rule.
Canadian cattle and hogs industry representatives stated that the revised COOL rule
would not bring the US into compliance, they said that it would increase the
discrimination. The government of both Canada and Mexico rejected the USDA
revised rule as solution to the WTO dispute. Because they said it will damage the
industry on both sides of the boarder.
On June 10, 2013, Mexico, Canada, USA, stablish a compliance panel and address
compensation or suspension of concessions.
On October 20, 2014 the compliance result was that COOL rule:
The panel confirmed that COOL is legitimate objective.
The manner in which COOL is implemented treats imported livestock
unfavorably than domestic livestock.
The panel couldnt determine if the rule is more trade restrictive than
necessary.
United States Asked to Appeals on November 28, 2014. The reviews finding was
that the rule is More trade restrictive than necessary this mean COOL violated U.S.
WTO obligations.
2.5 THE
RESOLUTION
In June 2015 Canada requested over C$3 billion (US$2.4 billion) per year, while
Mexico requested US$713.4 million that they say was resulted by COOL measure.
US argues that the amounts were insane and they dont calculate well, they dont
consider external factors. Canada should be US$43.22 million, and should not
exceed US$128.71 million annually. And Mexico should be entitled to US$47.55
million per year.
On December 20015, the arbitration panel mention on the report that the Canadas
annual losses were C$1,055 billion (US$ 781 million) and Mexico at $228 million..
But it doesnt include indirect losses.
December 18, 2015 President Barack Obama signs a large spending package for
2016 which includes the repeal of COOL labeling, which violates the rules of the
World Trade Organization (WTO) and affected exports of calves and other products
from Mexico and Canada. (MORALES, 2015).
The result derogation on the COOL law.
3 ANNEX
3.1 AGREEMENTS
2.2 Technical regulations are not prepared, adopted or applied with a view to
or with the effect of creating unnecessary obstacles to international
trade. Regulations shall not be more trade-restrictive than necessary to fulfil
a legitimate objective. Such are, inter alia: national security
requirements; the prevention of deceptive practices; protection of human
health or safety, animal or plant life or health, or the environment.
4 BIBLIOGRAPHY
el economista, 2012. http://m.eleconomista.mx/industrias/2015/08/07/mexicocanada-equivocan-calculo-impacto-etiquetado-cool-eu. [En lnea]
Available at: http://m.eleconomista.mx/industrias/2015/08/07/mexico-canadaequivocan-calculo-impacto-etiquetado-cool-eu
[ltimo acceso: 26 JANUARY 2016].
fas, 2015. https://www.fas.org/sgp/crs/misc/RS22955.pdf. [En lnea]
Available at: https://www.fas.org/sgp/crs/misc/RS22955.pdf
[ltimo acceso: 29 JANUARY 2016].
Greene, J. L., 2015. https://www.fas.org/sgp/crs/misc/RS22955.pdf. [Online]
Available at: https://www.fas.org/sgp/crs/misc/RS22955.pdf
[Accessed 24 January 2016].
ictsd., 2014. http://www.ictsd.org/bridges-news. [En lnea]
Available at: http://www.ictsd.org/bridges-news/puentes/news/nuevas-medidas-deestados-unidos-sobre-etiquetado-cool-violan-normas-omc
[ltimo acceso: 17 Jnaury 2016].
MORALES, R., 2015. http://eleconomista.com.mx/industrias/2015/12/21/eu-derogaetiquetado-cool. [En lnea]
Available at: http://eleconomista.com.mx/industrias/2015/12/21/eu-derogaetiquetado-cool
[ltimo acceso: 17 january 2016].
WTO, 2015. https://www.wto.org/. [En lnea]
Available at: https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds384_e.htm
[ltimo acceso: 17 JANUARY 2016].
WTO-GATT, 1994.
https://www.wto.org/english/docs_e/legal_e/gatt47_01_e.htm#art3_4. [En lnea]
Available at: https://www.wto.org/english/docs_e/legal_e/gatt47_01_e.htm#art3_4
[ltimo acceso: 27 January 2016].
WTO-SPS, n.d. https://www.wto.org/english/docs_e/legal_e/15sps_01_e.htm#art2.
[Online]
Available at: https://www.wto.org/english/docs_e/legal_e/15sps_01_e.htm#art2
[Accessed 26 JANUARY 2016].
WTO-TBT, 1994. https://www.wto.org/spanish/docs_s/legal_s/17-tbt_s.htm#art2_1.
[Online]
Available at: https://www.wto.org/spanish/docs_s/legal_s/17-tbt_s.htm#art2_1
[Accessed 24 JANUARY 2016].