DS384 and DS386:  United States — Certain country of origin labelling (COOL) requirements

The DSB considered Canada’s request for authorisation to suspend concessions to the United States in this dispute. In light of the US objection to Canada’s “excessive” request, the matter is now referred to arbitration.

Canada recalled that at its 29 May 2015 meeting, the DSB had adopted the Appellate Body and the compliance panel reports which had concluded that the amended COOL measure continued to be inconsistent with the US obligations under the Technical Barriers to Trade (TBT) Agreement and the General Agreement on Tariffs and Trade (GATT) 1994. Given the continued non-compliance by the United States and its adverse effects on Canadian stakeholders, Canada requested that the DSB authorise Canada to suspend concessions in the amount of CDN$ 3.068 billion per year (about US$ 2.5 billion). This was the equivalent of the level of nullification and impairment of benefits suffered by Canada, on an annual basis, as a result of the amended COOL measure. Canada noted the US communication of 16 June 2015 informing of its objection to the amount requested by Canada. Canada understood that, as a result of the US objection, the matter is now referred to arbitration.

The United States noted that, further to its objection to Canada’s request, this matter was referred to arbitration. The US said it strongly disagreed with Canada’s specific proposal for the suspension of concessions which, in its view, was quite excessive.

The DSB took note of the statements and that the matter raised by the United States in document WT/DS384/36 has been referred to arbitration.

Previously, Mexico withdrew from the proposed agenda its request for authorisation to suspend concessions to the United States, citing an error in its request. A new request by Mexico will be shortly circulated to members.

The next regular meeting of the DSB is scheduled for 19 June 2015.