June, 29 2012, 11:33am EDT

WTO Rules Against Yet Another U.S. Consumer Protection Policy
Final WTO Appeal Ruling Goes Against U.S. Country-of-Origin Meat Labeling Law that Applies to Domestic and Imported Meat
WASHINGTON
The World Trade Organization's (WTO) final ruling today against a highly popular U.S. consumer policy - the country-of-origin labeling (COOL) for meat found in every grocery store - will only intensify public opposition to trade pacts, such as the Trans-Pacific Partnership (TPP), a nine-nation pact now under negotiation that is slated to include anti-consumer rules similar to those in the WTO, Public Citizen said. Last week, U.S. officials agreed to allow Mexico and Canada to enter TPP negotiations despite failing to obtain a settlement in the WTO meat labeling case.
The WTO appellate ruling released today, which is final and not subject to further appeal, means that Mexico and Canada have succeeded in their WTO attack on the U.S. meat labeling policy. Under WTO rules, Mexico and Canada may soon be able to impose trade sanctions against the United States if it does not water down or eliminate the labels to comply with the WTO ruling. If the law is weakened, American families may not be able to know where there food is coming from, and health regulators may have a harder time tracking food borne bacteria to its point of origin. Public Citizen urged the administration not to weaken the law.
"Today's ruling makes very clear that these so-called 'trade' pacts have little to do with trade between countries, but rather impose outrageous limits on the most basic consumer safety policies on which we all rely," said Lori Wallach, director of Public Citizen's Global Trade Watch. "The WTO announcing that big agribusiness corporations must be allowed to sell mystery meat here, despite U.S. consumers and Congress demanding these labels, is yet another example of outsourcing our legal system to international commercial bodies that push corporate interests."
Earlier this month, leaked text from the TPP revealed that the agreement, if completed, would subject U.S. laws to challenges by private business interests before secretive foreign tribunals and authorize the payout of unlimited funds, in compensation to businesses, from the U.S. Treasury.
Today's decision narrowed the number of specific WTO provisions that the U.S. meat labeling policy was found to violate, but still reaffirmed the previous WTO ruling that the law must be altered or eliminated. This ruling follows WTO rulings this year against U.S. "dolphin-safe" tuna labels and a U.S. ban on clove-, candy- and cola-flavored cigarettes.
"These three rulings - with the WTO slapping down safe hamburgers, Flipper and children's smoking prevention policy - make it increasingly clear to the public that the WTO is leading a race to the bottom in consumer protection," said Todd Tucker, research director of Public Citizen's Global Trade Watch.
After 50 years of state efforts to institute country-of-origin labeling for meat cuts and products, and federal experimentation with voluntary COOL for meat, Congress passed a mandatory COOL program as part of the 2008 farm bill. In their successful WTO challenge, Mexico and Canada argued that the mandatory program violated the limits that the WTO sets on what sorts of product-related "technical regulations" WTO signatory countries are permitted to apply. In their filings to the WTO, Canada and Mexico suggested that the U.S. should drop its mandatory labels in favor of a return to voluntary COOL or to standards suggested by the Codex Alimentarius, an international food standards body in which numerous international food companies play a central role. Neither option would ensure that U.S. consumers are guaranteed the same level of information as the current U.S. labels. In an initial ruling in November 2011, the WTO sided with Mexico and Canada against the U.S. law, but the U.S. appealed the decision in January of this year.
The Obama administration is in the process of negotiating the secretive TPP trade deal, an expansive deal that expands on the North American Free Trade Agreement (NAFTA), which currently includes 11 Asian and Western Hemisphere countries. The pact is expected to include limits on domestic consumer safety and labeling policy.
"The only thing worse than NAFTA-on-steroids with any old country is NAFTA-on-steroids with NAFTA countries," said Wallach. "What's worse, the administration appears to have abandoned its leverage and greenlit Mexico and Canada joining the TPP without an agreement to drop their WTO attack on consumer labels. The American public is desperately waiting for President Barack Obama to show some negotiating savvy, and to start fulfilling his campaign pledges and reconsider the so-called 'trade' model that his administration is pushing with the TPP."
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
(202) 588-1000LATEST NEWS
Senate Tosses 'Dangerous Provision' Preventing State-Level AI Regulation From GOP Megabill
"From the start, this provision had Big Tech's money and lobbyists all over it. This is a major victory for the American people over the AI industry," said one advocate.
Jul 01, 2025
With a 99-1 vote early Tuesday, the Republican-controlled Senate decided to remove a controversial provision that would have prevented state-level regulation on artificial intelligence for 10 years from U.S. President Donald Trump's massive tax and spending bill that is currently being debated in Congress.
Sen. Thom Tillis (R-N.C.) was the lone lawmaker who voted to keep the moratorium in the bill.
While far from the only controversial part of the reconciliation package, the provision drew opposition from an ideologically diverse group that included Democratic and Republican state attorneys general; over 140 groups working to support children's online safety, consumer protections, and responsible innovation; and faith leaders.
Senators struck Sen. Ted Cruz's (R-Texas) AI measure from the megabill by adopting an amendment introduced by Sen. Marsha Blackburn (R-Tenn.). They voted on Blackburn's amendment during a session known as a vote-a-rama. Blackburn introduced the amendment after considering an agreement that would have watered down the provision.
According to The Verge, the measure that was rejected on Tuesday required states to avoid regulation AI and "automated decision systems" if they wanted to get funding for their broadband programs.
The provision would have been a major win for Big Tech, which has made the case that state laws around AI are obstructing their ability to do business.
Advocates and Democratic lawmakers cheered the decision to strip the provision.
"From the start, this provision had Big Tech's money and lobbyists all over it. This is a major victory for the American people over the AI industry. It shows that Americans are aware of the proliferation of AI harms in real time," said J.B. Branch, Big Tech accountability advocate at the watchdog group Public Citizen.
Sen. Edward Markey (D-Mass.) said Tuesday that "early this morning, the Senate overwhelmingly voted to reject a dangerous provision to block states from regulating artificial intelligence, including protecting kids online. This 99-1 vote sent a clear message that Congress will not sell out our kids and local communities in order to pad the pockets of Big Tech billionaires."
In addition to concerns focused on Big Tech, experts recently told The Guardian that in the absence of state-level AI regulation, untrammeled growth of AI would take a toll on the world's "dangerously overheating climate."
Sacha Haworth, the executive director of the Tech Oversight Project, credited the "massive" defeat of Cruz's provision to the "incredible mobilizing by advocates to beat back Big Tech lobbying and last-minute bullying."
Keep ReadingShow Less
Critics Shred JD Vance as He Shrugs Off Millions of Americans Losing Medicaid as 'Minutiae'
"What happened to you J.D. Vance—author of Hillbilly Elegy—now shrugging off Medicaid cuts that will close rural hospitals and kick millions off healthcare as 'minutiae?'" asked Rep. Ro Khanna (D-Calif.).
Jul 01, 2025
Vice President J.D. Vance took heat from critics this week when he downplayed legislation that would result in millions of Americans losing Medicaid coverage as mere "minutiae."
Writing on X, Vance defended the budget megabill that's currently being pushed through the United States Senate by arguing that it will massively increase funding to Immigration and Customs Enforcement, which he deemed to be a necessary component of carrying out the Trump administration's mass deportation operation.
"The thing that will bankrupt this country more than any other policy is flooding the country with illegal immigration and then giving those migrants generous benefits," wrote Vance. "The [One Big Beautiful Bill] fixes this problem. And therefore it must pass."
He then added that "everything else—the CBO score, the proper baseline, the minutiae of the Medicaid policy—is immaterial compared to the ICE money and immigration enforcement provisions."
It was this line that drew the ire of many critics, as the Congressional Budget Office has estimated that the Senate version of the budget bill would slash spending on Medicaid and the Children's Health Insurance Program by more than $1 trillion over a ten-year-period, which would result in more than 10 million people losing their coverage. Additionally, Sen. Rick Scott (R-Fla.) has proposed an amendment that would roll back the expansion of Medicaid under the 2010 Affordable Care Act, which would likely kick millions more off of the program.
Many congressional Democrats were quick to pounce on Vance for what they said were callous comments about a vital government program.
"So if the only thing that matters is immigration... why didn't you support the bipartisan Lankford-Murphy bill that tackled immigration far better than your Ugly Bill?" asked Rep. Daniel Goldman (D-N.Y.). "And it didn't have 'minutiae' that will kick 12m+ Americans off healthcare or raise the debt by $4tn."
"What happened to you J.D. Vance—author of Hillbilly Elegy—now shrugging off Medicaid cuts that will close rural hospitals and kick millions off healthcare as 'minutiae?'" asked Rep. Ro Khanna (D-Calif.).
Veteran healthcare reporter Jonathan Cohn put some numbers behind the policies that are being minimized by the vice president.
"11.8M projected to lose health insurance," he wrote. "Clinics and hospitals taking a hit, especially in rural areas. Low-income seniors facing higher costs. 'Minutiae.'"
Activist Leah Greenberg, the co-chair of progressive organizing group Indivisible, zeroed in on Vance's emphasis on ramping up ICE's funding as particularly problematic.
"They are just coming right out and saying they want an exponential increase in $$$ so they can build their own personal Gestapo," she warned.
Washington Post global affairs columnist Ishaan Tharoor also found himself disturbed by the sheer size of the funding increase for ICE that Vance is demanding and he observed that "nothing matters more apparently than giving ICE a bigger budget than the militaries of virtually every European country."
Keep ReadingShow Less
'Heinrich Should Be Ashamed': Lone Senate Dem Helps GOP Deliver Big Pharma Win
The provision, part of the Senate budget bill, was described as "a blatant giveaway to the pharmaceutical industry that would keep drug prices high for patients while draining $5 billion in taxpayer dollars."
Jul 01, 2025
The deep-pocketed and powerful pharmaceutical industry notched a significant victory on Monday when the Senate parliamentarian ruled that a bill described by critics as a handout to drug corporations can be included in the Republican reconciliation package, which could become law as soon as this week.
The legislation, titled the Optimizing Research Progress Hope and New (ORPHAN) Cures Act, would exempt drugs that treat more than one rare disease from Medicare's drug-price negotiation program, allowing pharmaceutical companies to charge exorbitant prices for life-saving medications in a purported effort to encourage innovation. (Medications developed to treat rare diseases are known as "orphan drugs.")
The consumer advocacy group Public Citizen observed that if the legislation were already in effect, Medicare "would have been barred from negotiating lower prices for important treatments like cancer drugs Imbruvica, Calquence, and Pomalyst."
Among the bill's leading supporters is Sen. Martin Heinrich (D-N.M.), whose spokesperson announced the parliamentarian's decision to allow the measure in the reconciliation package after previously advising that it be excluded. Heinrich is listed as the legislation's only co-sponsor in the Senate, alongside lead sponsor Sen. John Barrasso (R-Wyo.).
"Sen. Heinrich should be ashamed of prioritizing drug corporation profits over lower medicine prices for seniors and people with disabilities," Steve Knievel, access to medicines advocate at Public Citizen, said in a statement Monday. "Patients and consumers breathed a sigh of relief when the Senate parliamentarian stripped the proposal from Republicans' Big Ugly Betrayal, so it comes as a gut punch to hear that Sen. Heinrich welcomed the reversal and continued to champion a proposal that will transfer billions from taxpayers to Big Pharma."
"People across the country are demanding lower drug prices and for Medicare drug price negotiations to be expanded, not restricted," Knievel added. "Sen. Heinrich should apologize to his constituents and start listening to them instead of drug corporation lobbyists."
The Biotechnology Innovation Organization, a lobbying group whose members include pharmaceutical companies, has publicly endorsed and promoted the legislation, urging lawmakers to pass it "as soon as possible."
"This is a blatant giveaway to the pharmaceutical industry that would keep drug prices high for patients."
The nonpartisan Congressional Budget Office has estimated that the ORPHAN Cures Act would cost U.S. taxpayers around $5 billion over the next decade.
Merith Basey, executive director of Patients For Affordable Drugs Now, said that "patients are infuriated to see the Senate cave to Big Pharma by reviving the ORPHAN Cures Act at the eleventh hour."
"This is a blatant giveaway to the pharmaceutical industry that would keep drug prices high for patients while draining $5 billion in taxpayer dollars," said Basey. "We call on lawmakers to remove this unnecessary provision immediately and stand with an overwhelming majority of Americans who want the Medicare Negotiation program to go further. Medicare negotiation will deliver huge savings for seniors and taxpayers; this bill would undermine that progress."
Keep ReadingShow Less
Most Popular