Audio: Potential COOL Retaliation is Hot Topic at USMEF Board Meeting
Published: May 27, 2013
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You may download the audio file here
When USDA issued its final rule on country of origin labeling (COOL) last week, it became a prime topic of discussion at the spring meeting of the U.S. Meat Export Federation (USMEF) Board of Directors in Washington, D.C. Producers and exporters of U.S. beef, pork and lamb are particularly concerned that the revised rule still won’t comply with World Trade Organization (WTO) obligations, which would make U.S. products vulnerable to retaliatory measures imposed by Canada and Mexico. These two markets imported a combined total of more than $4 billion in U.S. red meat in 2012 – which was nearly 35 percent of the total worldwide export value.
The attached audio report includes the following comments from the USMEF board meeting:
• Guest speaker James Wiesemeyer of Informa Economics tells USMEF members that if the USDA rule is not WTO-compliant, Congress may have to revisit the issue in the Farm Bill.
• Thad Lively, USMEF senior vice president for trade access, explains the likely timeline for a WTO ruling and the steps Canada and Mexico would need to take before imposing any retaliatory measures.
• Chad Russell, USMEF regional director for Mexico, Central America and the Dominican Republic offers his concerns about the likelihood of Mexico retaliating against U.S. pork.
TRANSCRIPT:
JOE SCHUELE: When USDA issued its revised rule on country of origin labeling last week, it became a hot topic at the board meeting of the U.S. Meat Export Federation, especially with respect to possible retaliation by Canada and Mexico. Here’s guest speaker James Wiesemeyer of Informa Economics.
JAMES WIESEMEYER: They think that they’re going to meet the spirit of that WTO ruling. We’ll see. In our talks with the Canadian trade officials and Mexico, they’re very upset at that final ruling. So we have not heard the end of this. Now if the WTO were to rule against the United States, there is a marker in the House Farm bill, trust me, that that will be able to be a part of a conference agreement to try to be settled again, so at least there’s framework there.
JOE SCHUELE: Any retaliation by Canada or Mexico wouldn’t happen right away, as explained by Thad Lively, USMEF senior vice president for trade access.
THAD LIVELY: Could be three to six months to get a decision out of the WTO. If the WTO decides no, we’re not in compliance, that’s when we start talking about Canada and Mexico retaliating against U.S. exports. We’ve heard, you know, statements from the Canadian Minister and others saying “this change to the rule doesn’t make it any better, come May 23rd we’re going to retaliate.” That’s not the way it’s going to work. But if, after a compliance review, it is determined that we’re out of compliance, they will have the right to retaliate, and I think products at the top of that list are going to be beef and probably pork.
JOE SCHUELE: USMEF Regional Director Chad Russell shared his concerns about Mexico, especially with regard to pork.
CHAD RUSSELL: Mexico doesn’t want to rock the agricultural relationship with the United States, it’s too important. But, having said that, they said if we’re pushed, we will exercise our rights under the WTO to retaliate. Pork could very well be on that list. Pork was on the NAFTA trucking retaliatory list. And pork producers are putting tremendous pressure on the new administration; they’re also lobbying their legislative branch.
JOE SCHUELE: For more on this and other trade issues, please visit USMEF.ORG. For the U.S. Meat Export Federation, I’m Joe Schuele.
The attached audio report includes the following comments from the USMEF board meeting:
• Guest speaker James Wiesemeyer of Informa Economics tells USMEF members that if the USDA rule is not WTO-compliant, Congress may have to revisit the issue in the Farm Bill.
• Thad Lively, USMEF senior vice president for trade access, explains the likely timeline for a WTO ruling and the steps Canada and Mexico would need to take before imposing any retaliatory measures.
• Chad Russell, USMEF regional director for Mexico, Central America and the Dominican Republic offers his concerns about the likelihood of Mexico retaliating against U.S. pork.
TRANSCRIPT:
JOE SCHUELE: When USDA issued its revised rule on country of origin labeling last week, it became a hot topic at the board meeting of the U.S. Meat Export Federation, especially with respect to possible retaliation by Canada and Mexico. Here’s guest speaker James Wiesemeyer of Informa Economics.
JAMES WIESEMEYER: They think that they’re going to meet the spirit of that WTO ruling. We’ll see. In our talks with the Canadian trade officials and Mexico, they’re very upset at that final ruling. So we have not heard the end of this. Now if the WTO were to rule against the United States, there is a marker in the House Farm bill, trust me, that that will be able to be a part of a conference agreement to try to be settled again, so at least there’s framework there.
JOE SCHUELE: Any retaliation by Canada or Mexico wouldn’t happen right away, as explained by Thad Lively, USMEF senior vice president for trade access.
THAD LIVELY: Could be three to six months to get a decision out of the WTO. If the WTO decides no, we’re not in compliance, that’s when we start talking about Canada and Mexico retaliating against U.S. exports. We’ve heard, you know, statements from the Canadian Minister and others saying “this change to the rule doesn’t make it any better, come May 23rd we’re going to retaliate.” That’s not the way it’s going to work. But if, after a compliance review, it is determined that we’re out of compliance, they will have the right to retaliate, and I think products at the top of that list are going to be beef and probably pork.
JOE SCHUELE: USMEF Regional Director Chad Russell shared his concerns about Mexico, especially with regard to pork.
CHAD RUSSELL: Mexico doesn’t want to rock the agricultural relationship with the United States, it’s too important. But, having said that, they said if we’re pushed, we will exercise our rights under the WTO to retaliate. Pork could very well be on that list. Pork was on the NAFTA trucking retaliatory list. And pork producers are putting tremendous pressure on the new administration; they’re also lobbying their legislative branch.
JOE SCHUELE: For more on this and other trade issues, please visit USMEF.ORG. For the U.S. Meat Export Federation, I’m Joe Schuele.