In May 2015, the World Trade Organization (“WTO”) settled a years-long international trade dispute arising out of the United States’ country of origin labeling (“COOL”) requirement for muscle cuts of meat. Finding that the U.S. COOL requirement violated the terms of two international trade agreements, the WTO paved the way for the aggrieved countries, Canada and Mexico, to retaliate. Then on December 9th, the WTO authorized Canada and Mexico to seek sanctions against the U.S. totaling approximately $1 billion. On December 21, however, the U.S. Congress passed a budget bill that contained language repealing part of the COOL requirement. The President signed the bill into law the same day. Misleading headlines proliferated, so let’s take a look at what was really repealed—and what this change in the law means to the wine industry.

The ongoing international dispute over country of origin labeling (“COOL”) requirements escalated this week when the World Trade Organization (“WTO”) paved the way for sanctions against the U.S. On Monday, December 7th, a WTO arbitrator issued a report [1] authorizing Canada and Mexico to seek approval for sanctions of more than 1 billion Canadian dollars and more than 227 million U.S. dollars per year, respectively. One of the U.S. products that Canada and Mexico have threatened to target is wine.