The World Trade Organization ruled against Country of Origin Labeling (COOL) on October 20. The compliance panel claims it gives Canadian and Mexican livestock less favorable treatment and negatively impacts competitiveness of imported livestock in the U.S.
The rule in question consists of two parts: the COOL statute and the 2013 Final rule Canada and Mexico took to the WTO earlier this year.
Trade groups are taking different stances against the ruling. The United States Cattlemen's Association say the rule should be amended to be brought into compliance. The National Cattlemen's Beef Association claims there is no regulatory fix to the rule, saying it brings the U.S. one step closer to facing retaliatory tariffs.
The United States can still appeal the ruling.