Earlier in May, World Trade Organization (WTO) ruled against the US regarding COOL on meat dispute between the US, Canada and Mexico. WTO said that labels carrying information about where meat is raised discriminate against livestock from Canada and Mexico.
Canada Minister of International Trade Ed Fast said: "Despite the WTO's final ruling that US country of origin labelling measures are discriminatory, the United States continues to avoid its international trade obligations. Our government will now move ahead under the WTO process and seek authorization for over $3 billion in retaliation.
"We continue to call on the United States to repeal COOL, cease this harmful policy and restore our integrated North American supply chain to the benefit of businesses and workers on both sides of the border."
The US can, however, avoid paying such huge amount in retaliation by revising or repealing the COOL law, which could damage the livestock industry.
Signed into American law in 2002, COOL requires retailers, such as full-line grocery stores, supermarkets, and club warehouse stores to notify their customers about information regarding the source of certain foods.
The food to be labeled under the law include muscle cut and ground meats: beef, veal, pork, lamb, goat, and chicken; wild and farm-raised fish and shellfish; fresh and frozen fruits and vegetables; peanuts, pecans, and macadamia nuts; and ginseng.
Canada and Mexico argued earlier that this law puts them at a disadvantage as American meatpackers seem reluctant to undergo the process of tracking imported animals.
