Asking twice paid off for Canada and Mexico, which are both disputing whether country-of-origin-labeling requirements allow for fair trade certified products.
The World Trade Organization agreed to set up a dispute settlement panel to look into details of the rules.
In October, the U.S. blocked the countries’ request for a panel, but was only able to do that once. At the next meeting of the dispute settlement body Nov. 19, the panel ruled in favor of Canada and Mexico.
The U.S. meat industry has taken the lead on the dispute, claiming that meat exports have been affected by new labeling laws. But if rules were to change, they would also affect fresh produce.
“As I understand it, it is a meat issue that is causing the dispute, but it’s something we are watching closely because what we found with COOL is that meat issues always end up affecting the produce side,” Tom O’Brien, Washington, D.C., representative of the Newark, Del.-based Produce Marketing Association, told The Packer in October.
Gerry Ritz, Canadian Agriculture Minister, said in a statement following the decision to establish a panel that he is confident Canada will win its challenge, according to Reuter’s.
Still, any decisions this panel makes shouldn’t come until summer or fall 2010, according to media reports.