The following is a press release from the Government of Canada dated November 19, 2009.

The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, and the Honourable Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, today announced that the World Trade Organization has established a dispute settlement panel to hear Canada’s challenge to U.S. mandatory country-of-origin labelling (COOL).

“Our assessments are showing us that COOL is having a negative impact on Canadian farmers and livestock producers,” said Minister Day. “We continue to stand up for the rights of Canadian producers during the dispute settlement process and make the case that the U.S. should lift these onerous requirements.”

“The request for a WTO panel is our next step in our continued efforts to defend Canada’s top quality exports and hard-working producers,” said Minister Ritz. “This government puts farmers first and will continue to fight for fair and unfettered access for our Canadian producers and exporters. We are confident that we will win our challenge.”

COOL is a mandatory U.S. labelling measure that imposes unfair and unnecessary costs on integrated North American supply chains, reducing competitiveness in both Canada and the U.S. and creating confusion and uncertainty for livestock industries on both sides of the border.

The WTO dispute settlement panel will be asked to determine whether the COOL measures are consistent with the United States’ WTO trade obligations. The panel is expected to issue its report next summer or early fall.

The U.S. and Canada are each other’s largest agricultural trading partners. In 2008, bilateral agricultural trade totalled approximately $37 billion. Reducing obstacles to trade has contributed to mutually beneficial supply chains, making both countries more competitive domestically and internationally.

Canada and the U.S. continue to have a close and ongoing dialogue on COOL and other issues.