WTO Extends Deadline In Labelling Dispute

by Mike Godfrey, Tax-News.com, Washington

11 January 2012

Canada, Mexico and the US's joint request was granted at the meeting of the Dispute Settlement Body, to extend, until March 23, 2012, the deadline for the adoption or appeal of the panel reports in the case regarding country of origin labelling (COOL) requirements.

The deferment relates to a case brought by the Canadian government in 2008, which was concluded in November 2011. Canada had contended that COOL has forced the livestock industries of the US's trading partners to implement a complex labelling and tracking system with an unnecessary paperwork burden and additional red tape. It was alleged that the measure has led to disintegration of the North American supply chain, created unpredictability in the market and imposed additional costs on producers on both sides of the border.

The World Trade Organisation (WTO) confirmed that measures in place in the United States on the sale of foreign livestock were discriminatory.

In the latest update on the case, the WTO permitted an extension to the 60-day time period, which would have expired on January 18, 2012, despite law that stipulates that if a panel report is not appealed within sixty days it will be adopted.

The request was made due to the extraordinary current workload of the Appellate Body.

The decision will extend the period of time the US can legally maintain its labelling regime, until March 23, 2012, when the reports are expected to be adopted.

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