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US Market Hopeful M-COOL Will Get Resolved

26 August 2015
Manitoba Pork Council

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US - The US market remains hopeful the issue of Mandatory Country of Origin Labelling will be addressed in time to avoid retaliatory tariffs, writes Bruce Cochrane.

In July, in an effort to ward off the threat of over $3,000,000,000 in retaliatory tariffs being imposed on US products exported into Canada and Mexico, the US House of Representatives voted to repeal provisions of Mandatory Country of Origin Labelling which pertain to beef, pork and poultry.

Just prior to the August recess, two proposed amendments were introduced in the US Senate, one which would follow the lead of the House and one that would replace mandatory labelling with a voluntary program that would require labels to detail where animals were born, raised and slaughtered to be considered domestic meat.

Dr Steve Meyer, the vice president pork analysis with EMI Analytics, says so far the market remains hopeful.

Dr Steve Meyer-EMI Analytics:

I think the market is pricing in kind of normal kinds of business going forward until it sees that, I guess we do have one more arbitration thing pending here, which I fully expect the United States to lose.

I talked to some guys this last week and our classification was that the market was still hopeful and so am I. I'm still hopeful that we'll get something rectified here.

I don't think we're going to win this arbitration but I'm hopeful that our Senate will act and follow the lead of our House in repealing the meat and poultry provisions of Mandatory Country of Origin Labelling.

There's some doubt about that right now but I believe that a solution to the problem is still in the market.

If the Senate, in a horrible lack of judgement, decides not to act on this or doesn't act appropriately and tariffs do come then we'll see some pressure on US markets when and if that becomes clear but I don't think it's in the market at the present time.

Canada has indicated it intends to proceed with retaliation unless Mandatory COOL is repealed.

ThePigSite News Desk

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