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Differential Impacts of Country of Origin Labeling: COOL Econometric Evidence from Cattle Markets

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  • Pouliot, Sébastien
  • Sumner, Daniel A.

Abstract

Country of origin labeling (COOL) is a common practice. It occurs routinely for many products in many places, but the US implementation of mandatory COOL for meat, whose purpose is to identify the origin of the livestock used to produce the meat, generated much controversy and a major WTO dispute that has yet to be settled. This working paper estimates econometrically differential market impacts of mandatory country of origin labels on cattle raised in Canada and imported into the United States. We find significant evidence of differential impacts of COOL through widening of the price bases and a decline in ratios of imports to total domestic use for both fed and feeder cattle.

Suggested Citation

  • Pouliot, Sébastien & Sumner, Daniel A., 2012. "Differential Impacts of Country of Origin Labeling: COOL Econometric Evidence from Cattle Markets," Working Papers 148593, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
    • Handle: RePEc:ags:spaawp:148593
    DOI: 10.22004/ag.econ.148593
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    1. Brester, Gary W. & Marsh, John M. & Atwood, Joseph A., 2004. "Distributional Impacts of Country-of-Origin Labeling in the U.S. Meat Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-22, August.
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    4. Ward, Clement E. & Schroeder, Ted C. & Schulz, Lee L., 2009. "Impacts from Government Regulations on the Canadian-U.S. Basis for Fed Cattle," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49327, Agricultural and Applied Economics Association.
    5. Jayson L. Lusk & Brian C. Briggeman, 2009. "Food Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 184-196.
    6. Rude, James & Gervais, Jean-Philippe & Felt, Marie-Helene, 2010. "Detecting COOL Impacts on US-Canada Bilateral Hog and Pork Trade Flows," Trade Policy Briefs 102301, Canadian Agricultural Trade Policy Research Network.
    7. James Rude & Javed Iqbal & Derek Brewin, 2006. "This Little Piggy Went to Market with a Passport: The Impacts of U.S. Country of Origin Labeling on the Canadian Pork Sector," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(3), pages 401-420, September.
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    10. Brester, Gary W. & Marsh, John M. & Jimmerson, Jason, 2004. "Distributional Impacts of Country-of-Origin Labeling in the U.S. Meat Industry," Briefings 29189, Montana State University, Department of Agricultural Economics and Economics, Agricultural Marketing Policy Center.
    11. Alejandro Plastina & Konstantinos Giannakas & Daniel Pick, 2011. "Market and Welfare Effects of Mandatory Country-of-Origin Labeling in the U.S. Specialty Crops Sector: An Application to Fresh Market Apples," Southern Economic Journal, John Wiley & Sons, vol. 77(4), pages 1044-1069, April.
    12. Loureiro, Maria L. & Umberger, Wendy J., 2003. "Estimating Consumer Willingness to Pay for Country-of-Origin Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(2), pages 1-15, August.
    13. Lusk, Jayson L. & Briggeman, Brian C., 2008. "AJAE appendix for “Food Values”," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 91(1), pages 1-12, February.
    14. Schulz, Lee L. & Schroeder, Ted C. & Ward, Clement E., 2011. "Trade-Related Policy and Canadian-U.S. Fed Cattle Transactions Basis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-13, August.
    15. Dimitris Politis & Halbert White, 2004. "Automatic Block-Length Selection for the Dependent Bootstrap," Econometric Reviews, Taylor & Francis Journals, vol. 23(1), pages 53-70.
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    17. Loureiro, Maria L. & Umberger, Wendy J., 2007. "A choice experiment model for beef: What US consumer responses tell us about relative preferences for food safety, country-of-origin labeling and traceability," Food Policy, Elsevier, vol. 32(4), pages 496-514, August.
    18. Awada, Lana & Yiannaka, Amalia, 2012. "Consumer perceptions and the effects of country of origin labeling on purchasing decisions and welfare," Food Policy, Elsevier, vol. 37(1), pages 21-30.
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    2. Countryman, Amanda M. & Bonanno, Alessandro & Hadrich, Joleen, 2016. "A COOL Repeal: Potential Outcomes of U.S. Mandatory Country of Origin Labeling Requirements on Dairy and Beef Sectors," Conference papers 330172, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Balcombe, Kelvin & Bradley, Dylan & Fraser, Iain & Hussein, Mohamud, 2016. "Consumer preferences regarding country of origin for multiple meat products," Food Policy, Elsevier, vol. 64(C), pages 49-62.
    4. Ross Hallren & Alexandra Opanasets, 2018. "Whence the Beef: The Effect of Repealing Mandatory Country of Origin Labeling (COOL) Using a Vertically Integrated Armington Model with Monte Carlo Simulation," Southern Economic Journal, John Wiley & Sons, vol. 84(3), pages 879-897, January.
    5. Edgar E. Twine & James Rude & Jim Unterschultz, 2016. "Country of Origin Labeling and Structural Change in U.S. Imports of Canadian Cattle and Beef," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(3), pages 545-563, September.
    6. Amanda M Countryman & Alessandro Bonanno, 2020. "A COOL Tale: Economic Effects of the U.S. Mandatory Country of Origin Labeling Repeal," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 888-912, December.
    7. Bonanno, Alessandro & Countryman, Amanda & Hadrich, Joleen, 2016. "A COOL Repeal: Potential Outcomes of U.S. Mandatory Country of Origin Labeling Requirements on Dairy and Beef Sectors," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236020, Agricultural and Applied Economics Association.
    8. Jason Winfree, 2024. "Food Origin Labeling and “Promoting Competition”," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 64(2), pages 267-287, March.
    9. Ronen, Eyal & Dawar, Kamala, 2016. "How Necessary? A Comparison of Legal and Economic Assessments GATT Dispute Settlements under: Article XX(b), TBT 2.2 and SPS 5.6," MPRA Paper 83834, University Library of Munich, Germany.
    10. Cristina Vaquero Piñeiro & Daniele Curzi, 2024. "Assessing the role of geographical indications in affecting the quality of imports," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(2), pages 653-671, June.
    11. Chen, Rui & Hartarska, Valentina & Wilson, Norbert L.W., 2018. "The causal impact of HACCP on seafood imports in the U.S.: An application of difference-in-differences within the gravity model," Food Policy, Elsevier, vol. 79(C), pages 166-178.
    12. James Rude & Marie‐Hélène Felt & Edgar Twine, 2016. "Detecting COOL Impacts on United States–Canada Bilateral Hog and Pork Trade Flows," Agribusiness, John Wiley & Sons, Ltd., vol. 32(2), pages 272-288, April.
    13. Edgar E. Twine & James Rude & Jim Unterschultz, 2016. "Canadian Cattle Cycles and Market Shocks," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(1), pages 119-146, March.

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    More about this item

    Keywords

    Agricultural and Food Policy; International Relations/Trade;

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • F1 - International Economics - - Trade
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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