VII - FINDINGS

Summary

Overview of the Matters before the Panel

7.1 In this dispute, Canada and Mexico advance claims against the United States' measures governing the country of origin labelling (“COOL”) requirements with respect to meat products. The complainants claim that the measures are inconsistent with Articles 2.1 and 2.2 of the TBT Agreement, and Articles III:4 and X:3(a) of the GATT 1994. The complainants have also advanced a non-violation claim under Article XXIII:1(b) of the GATT 1994.

7.2 The complainants argue that the measures accord imported livestock treatment less favourable than that accorded to like domestic livestock inconsistently with Article 2.1 of the TBT Agreement, as well as Article III:4 of the GATT 1994. The complainants assert that this is because complying with the COOL requirements results in higher segregation costs for imported livestock, which in turn affects the competitive conditions of imported livestock in the market.

7.3 Furthermore, the complainants claim that the COOL requirements are inconsistent with Article 2.2 of the TBT Agreement. According to the complainants, the true objective of the COOL requirements is to protect domestic industry, not to provide consumer information on origin as stated by the United States, and that, in the circumstances of this dispute, the provision of consumer information is not legitimate. The complainants state that there are less trade restrictive alternatives and, in any event, the COOL requirements do not fulfil the objective of providing consumer information on origin because labels under the COOL requirements convey confusing and inaccurate information on the origin of meat products.