A COOL Repeal: Potential Outcomes of U.S. Mandatory Country of Origin Labeling Requirements on Dairy and Beef Sectors

Amanda M. Countryman, Alessandro Bonanno and Joleen Hadrich

No 330172, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: US Congress repealed the Mandatory Country of Origin Labeling (COOL) requirement for certain agricultural commodities on December 18, 2015 after continued controversy within the US agricultural industry and seven years of consultations in the World Trade Organization (WTO) Dispute Settlement (DS) process. The COOL repeal followed the WTO final ruling authorizing retaliatory import tariffs totaling $1 billion on US-sourced imports into Canada and Mexico beginning on December 21, 2015. While the dispute was based on the trade-distorting effects of COOL on Canada and Mexico’s beef and pork exports to the US, both trade partners announced intentions to retaliate with tariffs on imports of a suite of US-sourced agricultural commodities, including dairy and beef products. This paper evaluates the potential outcomes of the COOL repeal on directly and indirectly affected industries. Specifically we will investigate two scenarios; first, the potential economic effects of continued COOL, assuming Canada and Mexico are permitted to retaliate against agricultural imports from the US, and second, the potential outcomes of removing mandatory COOL in agricultural sectors.

Keywords: International Relations/Trade; Livestock Production/Industries (search for similar items in EconPapers)
Pages: 13
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:330172

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