Farmscape for July 20, 2012 (Episode 4199)
A University of Missouri agricultural economist suggests the 2012 U.S. Farm Bill offers an opportunity to bring Mandatory U.S. Country of Origin Labelling legislation into compliance with international trading rules.
Last month the World Trade Organization Appellate Body upheld a November 2011 Dispute Settlement Panel ruling that U.S. Mandatory Country of Origin Labelling discriminates against imported livestock and is inconsistent with U.S. trade obligations.
The U.S. now has 15 months to bring the law into compliance or face the prospects of retaliatory tariffs.
Dr. Ron Plain, an agricultural economics professor with the University of Missouri, says the U.S. Farm Bill presents an opportunity to resolve the issue.
Clip-Dr. Ron Plain-University of Missouri:
About every five years the U.S. government rewrites the general farm legislation.
That is an obvious vehicle for straightening out some of this.
The original Country of Origin Labelling requirements were in an earlier version of the U.S. Farm Bill so that's possible.
Another possibility will be stand-alone legislation that would move through to settle the dispute.
Most likely what ever happens will be fairly slow.
If it's taken care of with respect to our Farm Bill that's a good chance that it will be handled here in 2012.
The current Farm Bill expires this year so Congress is under pressure to write a new one.
They may simply go with a one year extension but there's sort of this window of opportunity because of the fact congress has to rewrite this major piece of legislation to deal with it here it in the next 12 months or so.
If it's not handled at this time then it could well drag out for two to three years or longer.
Dr. Plain suggests U.S. farmers have more to lose through trade disputes than those in most other countries so most of U.S. agriculture will be in favor of the government resolving the problem.
For Farmscape.Ca, I'm Bruce Cochrane.
*Farmscape is a presentation of Sask Pork and Manitoba Pork Council