Congress has spoken, and the outcome is that the COOL (Country of Origin Labeling) is uncool.
As we previously reported, the requirement that mandated labeling where meat originated enacted a retaliatory tariff from Mexico and Canada, a move which echoed a ruling from the World Trade Organization (WTO) that the labels were discriminatory.
Now it has officially been repealed, avoiding upwards of a billion dollars in taxation for U.S. meat exporters.
The reception of Congress’ move could be a mixed one amongst consumers and industry members. While consumers demand transparency about where their food comes from, those in the industry would have to eat costs or boost prices to pay for the taxes Mexico and Canada would charge for adding a label that could deter shoppers.
“As part of the largest exporting state in the nation for more than a dozen years, Texas agricultural producers have played an important role in feeding the world. Maintaining a strong trade system supports thousands of jobs associated with exporting agricultural commodities, including those grown right here in Texas,” Texas Agriculture Commissioner Sid Miller said in a released statement. “The repeal of mandatory country of origin labeling will protect American exporters from $1 billion in retaliatory tariffs, and I commend Congress for their action on this matter.”
The situation is a win for American exporting companies, as well as Canadian and Mexican companies that send meat to the U.S. Consumers, however, could continue to push the issue in stores as numbers reflect a strong push in favor of the labels.
Law Street reports that a 2013 study showed that 87 percent of adults favored, either strongly or somewhat, requiring food sellers to indicate on the package label the country or countries in which animals were born, raised and processed. Additionally, 90 percent of adults favored, either strongly or somewhat, requiring food sellers to indicate on the package label the country or countries in which animals were born and raised and the fact that the meat was processed in the U.S.
But Republican Senator of Kansas Pat Robert said that the retaliation from Mexico and Canada is what made disbanding the requirement the best outcome for all.
"It doesn't matter if you support COOL or if you oppose COOL," Roberts said, according to NPR. "You cannot ignore the fact that retaliation is imminent and that we must avoid it."
When the case went to Congress, Republican Senator for Arkansas Tom Cotton stated that the retaliatory tariffs would cost Arkansas alone tens of millions of dollars, not to mention be a “devastating blow” to both U.S. national and state economies. A cost that can now be avoided with this move.
DeliMarket News will continue to report on this and all other moves affecting the deli industry.
