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Feds Welcome Formation of WTO Panel on COOL Dispute

Feds Welcome Formation of WTO Panel on COOL Dispute

By Amanda Brodhagen, Farms.com

The Canadian government says that it is pleased with the establishment of a World Trade Organization (WTO) compliance panel on U.S. Country of Origin Labelling (COOL).

“Our Government continues to aggressively lobby the U.S. Government to make a legislative change to finally put an end to mandatory Country of Origin Labelling that hurts producers on both sides of the border,” Agriculture Minister Gerry Ritz said in a release.

Canada had been calling for the WTO to rule on whether the U.S. Department of Agriculture’s May 23 revisions to COOL comply with trade obligations. The panel will decide if the USDA brought its COOL rules into conformity. The Canadian government maintains that the USDA’s amendments to COOL do not meet compliance standards, and instead increase discrimination against Canadian livestock.

Under USDA’s revisions, COOL was expanded and now requires meat products to include more information, including where the meat was born, raised and slaughtered.  The tightened rule also forbids commingling of muscle cuts.  

Canada is awaiting approval from the WTO before imposing retaliatory tariffs on certain U.S. imports. The dispute resolution could take 15 to 18 months.
 


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Funds Ditch Ag Commodities, Chase Stocks Amid an End to Middle East War, & Trade Deal Buzz

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The 12-day war between Iran-Israel came to an end sending crude oil futures plunging as the big fund speculators removed the war risk premium.

The weather risk premium in the Ag complex is sending corn, wheat and soybean futures lower on month-end selling ahead of the market moving USDA quarterly grain stocks and acreage reports on June 30th.

Instead, funds were chasing and sending tech stocks higher with the S&P 500/NASDAQ indexes setting new all-time record highs!

June 1 USDA Hogs and pigs report was slightly bearish while the U.S. $ Index traded to new contract lows as the de-dollarization that began in 2014 continues.

Feed in the form of soybean meal futures for livestock producers got cheaper, trading to new contract lows.

The Stats Canada seeded acreage update was bullish canola and wheat.