WTO rules against US meat origin labels appeal

The World Trade Organisation (WTO) has ruled against a US appeal for introducing country-of-origin labels on meat packages, saying it discriminates against livestock from Canada and Mexico.

As per the US rules, meat producers need to identify the place of origin for animals, as well as where they are raised and slaughtered. The information is required to be printed on the packages that are sold in grocery stores.

After the US introduced the rule for the labeling of meat products in 2009, Canada and Mexico had filed suits at the WTO saying that the move was discriminatory and leads to an increase in expenses for them, while decreasing the value of their livestock.

The two countries also said that it had cost them more than $1bn annually, and also resulted in business losses for some farmers.

The WTO had agreed to the suit and has already ruled against the US thrice.

Following the latest ruling, both Canada and Mexico are preparing trade sanctions against the US.

The Mexican and Canadian ministers for trade and agriculture said in a joint statement: "Our governments will be seeking authorisation from the WTO to take retaliatory measures against US exports."

Meanwhile, the WTO has increased pressure on the US, and the country is working on introducing legislation to repeal the labeling requirements for beef, pork and poultry.

Agriculture committee chairman Pat Roberts was quoted by the Wall Street Journal as saying: "If Congress doesn’t act swiftly, retaliation will wreak havoc on the US economy."