(Wines&Vines) - Wineries that export to Canada and Mexico have escaped significant tariffs following lawmakers’ repeal of Country of Origin Labeling (COOL) for beef and pork in accordance with a recent World Trade Organization (WTO) ruling.

On Dec. 7, an arbitrator with the WTO reiterated decisions the international trade organization has delivered since 2011, deeming COOL requirements an undue regulatory burden on foreign meat producers and a potential cause of inaccurate labeling in stores.

Originally adopted in 2002, successive changes to COOL requirements have cost livestock producers in Canada and Mexico billions of dollars. The latest WTO decision marked the end of the road for U.S. appeals and opened the door to retaliatory tariffs on wine to the tune of approximately $1.25 billion per year.

“If the U.S. Senate does not take immediate action to repeal COOL for beef and pork, Canada will quickly take steps to retaliate,” threatened a statement issued by Canada’s ministers of agriculture and international trade following the WTO decision’s release. 

Congress paid heed and nixed COOL requirements for pork and beef Dec. 18 as part of an omnibus appropriations bill that bundled together a number of measures as lawmakers prepared to adjourn for the holidays. (COOL provisions remain in place for lamb, goat, venison, fish and shellfish, fruits and vegetables, ginseng and various nuts.)