As Congress looks set to pass a bill that would usher in the advancement of more sweeping multilateral trade deals, the introduction of another bill this week shows how American lawmakers have struggled to retain the ability to legislate after past agreements.
Senate agriculture committee ranking member Debbie Stabenow (D-Mich.) is introducing a proposal to amend federal laws after an international tribunal in May confirmed that American “country-of-origin labeling” (COOL) food product laws violate World Trade Organization rules.
“This approach is a pathway to finding a solution on country of origin labeling,” Stabenow said. “COOL serves an important role for consumers and industry. However, the WTO has been clear that we must find a solution that is consistent with our international trade obligations.”
Stabenow’s proposed labeling system wouldn’t even be enforceable by punishment. In a press release, her staff described it as being based on “a completely voluntary Product of the US label.”
Even a system that isn’t backed by the threat of a legal rebuke could, however, be ruled in violation of WTO rules. In 2011, after Mexico sued the US, the body found that voluntary American “dolphin-safe” labels for tuna products were “a de facto mandatory regulation” and “too trade restrictive.”
The COOL dispute, first brought by Canada and Mexico in 2013, was centered around a change in labeling laws that would have forced producers to note where certain animals were born, raised, and slaughtered.
If the US does not amend the laws, the WTO will permit Canada and Mexico to levy retaliatory tariffs on American products.
The House has already passed legislation that would repeal the offending COOL laws and then some. It would strike down the sticker requirements for ground and muscle beef, pork, and chicken products. The WTO ruling did not apply to ground or chicken products.
The Senate agriculture committee is on Thursday holding a hearing on the matter, with a focus on the possible WTO-approved retaliation.
Later Wednesday, the Senate is expected to advance a House-passed Trade Promotion Authority bill–legislation that would smooth the passage of sweeping multilateral agreements currently being negotiated by the US and other nations. Deals currently being hashed out include the Trans-Pacific Partnership, the Transatlantic Trade and Investment Partnership, and the Trade In Services Agreement.
