WTO World Trade Organization : DSB grants authorization to Canada and Mexico for retaliation against the US in the “COOL dispute”

DS384 and DS386 : United States - Certain Country of Origin Labelling (COOL) requirements.

Earlier in the month, a WTO arbitrator issued the report on the level of retaliation that Mexico and Canada were entitled to request in their dispute with the United States over 'country of origin labelling' (COOL) requirements, because of the failure of the US to bring its measures in conformity with its WTO obligations.

The arbitrator found the levels of nullification or impairment to beCAD 1,054.729 million annually for Canada and USD 227.758 million annually for Mexico.

• The Arbitrator's decision for Canada is contained in document WT/DS384/ARB.
• The Arbitrator's decision for Mexico is contained in document WT/DS386/ARB.

The meeting was originally scheduled for the 18th of December but the US objected to a DSB meeting being held as long as the Ministerial Conference was in session and objected to the election of an interim Chairman for the meeting. Canada, Mexico, the European Union, Australia, Japan, New Zealand and Korea expressed concern and disappointment with the position taken by the US on 18 December.

The US informed the 21 December meeting that the COOL legislation had been repealed on 18th December 2015 by the US Congress, and the WTO-inconsistent measures had been fully withdrawn. The request for retaliation was, thus, 'obsolete'.

Canada acknowledged the measures taken by the US over the weekend but added that 'since the United States only took action this weekend and more steps need to be completed, we cannot yet agree that this dispute has been completely resolved'.

Mexico said it was analysing the recent actions taken by the US to comply with the recommendations and rulings of the DSB.

The next regular meeting of the DSB is scheduled for 25 January 2016.