Issue

Country of Origin Labelling legislation, as adopted by the U.S., adds huge implementation and enforcement costs to Canadian producers in the form of huge price discounts applicable to livestock exported into the U.S. 

Background

Country of Origin Labelling (COOL) legislation, as adopted by the U.S., is market protectionist in nature, constitutes a technical barrier to trade, and is deemed inconsistent with international trade rules, including NAFTA and the World Trade Organization (WTO). COOL legislation adds huge implementation and enforcement costs throughout the supply chain. These additional costs are being levied against Canadian producers in the form of huge price discounts applicable to livestock exported into the U.S. 

COOL legislation has negatively and profoundly impacted prices paid to Canadian producers on exports into the U.S., such that our entire red meat industry, particularly the pork industry, is at a serious competitive disadvantage, and potentially on the verge of collapse. Speedy resolution of the issues caused through the COOL legislation is imperative to prevent the marginalization or complete collapse of the Canadian red meat industry. 

This legislation also fails to adequately address food safety issues, and is not uniformly applied to trade in all perishable foods and food products, and to all retailers of perishable foods and food products. 

The U.S. acknowledges that the instituted COOL legislation was never intended to address food safety; rather this legislation governs “marketing issues,” and was only developed to give consumers the right to make informed purchasing decisions based upon the “country of origin.” 

In 2011, the WTO ruled in Canada’s, deeming Country-of-Origin Labelling a protectionist measure for the U.S. market. The U.S. has been expected to appeal this decision and has not yet eliminated these aspects of its COOL legislation.

 Canadians are concerned about food safety as a priority to be held above the origin of the food, and as such, “Food Safety Policy” and “Country of Origin Labelling - Marketing Policy” should be treated as two separate issues, each with distinct rules to better protect and inform the consumer. 

Canada has some of the most stringent food production standards in the world, and as a result, Canadian consumers benefit from some of the safest food in the world. Furthermore, Canadians are demanding that labelling not lead to a discounting of prices paid on the export of Canadian products. The Alberta Chambers of Commerce applauds the federal government’s continued working in strengthening this safety record through the creation of a single data system.

Recommendations

The Alberta Chambers of Commerce recommends that the Government of Alberta:

1.  Support trade action by Canada's beef/pork production and processing sectors to combat the market protectionist aspects of Country-of-Origin Labelling (COOL) legislation. 
2. Work collaboratively with Canada’s beef/pork producers, producer associations and processors to apply the utmost pressure, on a continuous basis through NAFTA and the World Trade Organization (WTO), until such time as the U.S. eliminates the protectionist aspects of its COOL legislation. 
3. Take a leadership role in promoting the highest level of international food safety standards and practices applicable to international trade involving all perishable foods and food products, with due recognition and consideration for the following: 
   1. That Food Safety Standards Policy is to protect the health and well-being of the consumer, and 
   2. That said policy must be consistent with international trade rules, including NAFTA and WTO.
   3. That said policy must be applied uniformly throughout the food supply chain, must be economically feasible to implement and to enforce, both domestically and internationally, and must include labelling requirements referenced in said policy that: 
      • better inform the consumer about the quality of the product, and 
      • promote existing Canadian food traceability and production systems throughout the supply chain to enhance food safety standards and practices.