UPDATED November 4, 2014: ​
Members may login to read "WTO Rules Against United States on Revised Country of Origin Labeling," a memorandum prepared by Hogan Lovells US LLP, IDFA's legal counsel.

Late last month, the World Trade Organization (WTO) found that the U.S. Country of Origin Labeling (COOL) regulations violate U.S. international trade obligations. IDFA and several members have concerns that Canada and Mexico, among other countries, may retaliate against U.S. dairy exports as a result of the COOL rule.  

Hoping to avert retaliation, IDA and members recently signed on to a letter with more than 100 food companies and organizations, asking Congress to direct the Secretary of Agriculture to rescind elements of the rule. The United States can appeal the WTO decision, but if it stands, “a finding of non-compliance would surely result in serious economic harm to U.S. firms that export to our neighbors,” the letter said.

IDFA and members are also active in the COOL Reform Coalition, which promotes reforms to the COOL requirements to ensure that they are compliant with international trade obligations. The coalition is building awareness that the WTO ruling against the United States authorizes Mexico and Canada to retaliate broadly against all U.S. exports.

Canada’s Preliminary List Includes Cheese, Dairy Ingredients

Canada has already issued a preliminary retaliation list of products, which includes cheese, certain dairy ingredients and food preparations, including ice milk mix. Mexico hasn’t announced a list yet, but the country has implemented retaliatory tariffs in the past and likely will do so again.

Using publically available information, the COOL Reform Coalition has identified exported products in every U.S. state that could be targeted.  This list exceeds $1.8 billion in value and includes $300 million worth of milk powders and $126 million in cheese.    

Visit the COOL Reform Coalition website for more information, including the map showing the products from every state that could be affected. It also offers an online letter that members can send to Congress asking for intervention to prevent retaliation.

​Members may login to read "WTO Rules Against United States on Revised Country of Origin Labeling," a memorandum prepared by Hogan Lovells US LLP, IDFA's legal counsel.

For more information, contact Beth Hughes, IDFA director of international affairs, at bhughes@idfa.org.