In a 300-131 ruling, the House voted to pass the highly contentious COOL Amendments Act of 2015 (H.R. 2393) last week. This means that country-of-origin labeling will no longer be required for beef, pork and chicken. Consumer advocacy groups such as the Consumers Union (a division of Consumer Reports) are clearly unhappy about the passage of the bill, while industry associations such as GMA immediately applauded the decision.
“Without these changes to U.S. COOL rules, U.S. food and agricultural sectors could face financial losses in the billions when Mexico and Canada impose WTO authorized retaliatory tariffs as early as this summer,” said Denzel McGuire, executive vice president for government affairs at GMA, in a statement. “The financial impact of these tariffs will be felt even before they are implemented because the targets of these retaliatory tariffs will begin to experience a substantial drop in export sales almost immediately due to supply chain disruptions. A wide array of product categories will be impacted by these tariffs.”
On the opposing side, the Consumers Union states that the U.S. can avoid trade sanctions. According to the advocacy group, 90% of Americans surveyed want country-of-origin labeling on the meat they purchase. “No penalties have yet been accepted by the WTO, and the U.S. may still avoid trade sanctions by negotiating a settlement with Canada and Mexico,” said Jean Halloran, director of Consumers Union’s Food Policy Initiatives, in a letter sent to the House of Representatives, urging them to vote against a repeal. “Even if retaliation occurs, it is not likely to begin for many months, during which time the United States could develop and implement a solution preserving consumers’ access to country-of-origin information. Contrary to statements made by the proponents of H.R. 2393, a settlement with our trade partners would be the true “targeted response” to the WTO ruling.”
Now it’s up to the Senate.