Congress Repeals COOL Regulations for Meat Imports; Other Imports May Follow

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March 3, 2016

The Department of Agriculture has formally repealed its country of origin labeling (COOL) rules for muscle cuts of meat, as well as for ground beef and pork. This de-regulation is a response to certain sections of this year’s budget legislation enacted last December. Lawmakers hope that by quickly enacting this repeals, the U.S. will avoid an estimated 1 billion dollars in retaliatory tariffs which the WTO has authorized both Mexico and Canada to impose as a remedy for discrimination against their exports.

These regulations have been the subject of intense debate since they took effect in 2008. Domestic agricultural and consumer advocacy groups have historically favored COOL, arguing that the U.S. consumer prefers domestic goods over imported.

Representatives from large-scale agricultural producers and of groceries have starkly criticized COOL, expressing their concerns that the additional layers of labeling and classification have increased their operating costs. It was ultimately Mexico and Canada’s WTO dispute, filed soon after COOL took effect, that influenced the decision to repeal COOL regulations on select varieties of meat.

The COOL regulations applied not only to meats, but also to various “covered commodities” or “natural products”, such as fruits, vegetables, nuts, berries, fish and poultry. Even though COOL regulations have been repealed in some cases, it remains uncertain whether it will be repealed for all products. Such an outcome is possible, as Canada and Mexico’s victories have set a precedent which other countries with substantial agricultural exports to the U.S. may be emboldened to follow.

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