REGINA – The end could be near for United States meat labeling practices that segregate based on country-of-origin.
Country-of-origin labeling, better known as COOL, has hit Saskatchewan cattle producers particularly hard over the last six years.
Here are four ways the World Trade Organization’s ruling against the U.S. could benefit Saskatchewan:
1. Larger herds
Bill Jameson, Saskatchewan Cattlemen’s Association chair, says there were 1.5 million cows in the province in 2008. Today, that number has shrunk to 1.1 million.
“We have a dramatic decrease in our cow herd and COOL is one of the reasons that’s happened,” Jameson said. He expects the size of herds will begin to bounce back if the U.S. does repeal the legislation.
2. Increased profit
COOL means grocery stores south of the border require special labels to identify where meat has come from; Canadian producers argue it has only served as a protectionist measure and hasn’t improved safety.
“What it’s done is taken away our profit margin,” Jameson said, estimating the law has cost Saskatchewan cattle producers $50 million annually.
He says the losses could end immediately once the law is repealed.
3. No retaliation
Ottawa has threatened trade sanctions on U.S. products including wine and chocolate, but it appears both countries want to avoid a trade war.
“Of course we don’t want to see that happen,” said Agriculture Minister Lyle Stewart. “If the U.S. moves to repeal COOL, it won’t ever have to happen.”
4. Meat pricing
Abiding by COOL resulted in increased costs to export and label meat. If costs go down, producers say it could also mean better prices on store shelves.
“Everybody’s going to benefit,” Jameson said.
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