Those partners said if the USDA doesn’t alter the label requirements – which identify where beef is born, raised and slaughtered – the policy will trigger new tariffs on U.S. export products.
"USDA remains confident that these changes will improve the overall operation of the program and also bring the mandatory COOL requirements into compliance with U.S. international trade obligations," said Agriculture Secretary Tom Vilsack.
USDA-Animal Marketing Service was forced to redraft the rule after the World Trade Organization ruled in 2012 that the law penalized beef cattle cuts from Canada and Mexico. WTO ordered a modification of the rules by a deadline of May 23, 2013 – the day the new order came out.
"Our largest trading partners have already said that these provisions will not bring the United States into compliance with our WTO obligations and will result in increased discrimination against imported products and in turn retaliatory tariffs or other authorized trade sanctions," said NCBA President Scott George in a statement, adding that "any retaliation against U.S. beef would be devastating for our producers."
Mark Dopp, senior vice president of regulatory affairs for the American Meat Institute, called the USDA move "incomprehensible."
"The decision to proceed with a rule that is more costly, complex and burdensome than the earlier version, when WTO and our trading partners have sent strong signals that this is no 'fix,' shows a reckless disregard for trade relations and for companies whose very survival is at risk because they rely upon imported livestock."
Under the final rule, COOL labels must include "specific information regarding the three production steps." Variations would include:
* U.S. label – showing beef “born, raised and slaughtered in the United States
* Two labels for beef derived outside the U.S. – One example would read “Born in (country), raised and slaughtered in the U.S."; beef sent for immediate slaughter would be read "Born and raised in (country), slaughtered in the U.S."
* Imported meat labels – These will continue to read "Product of (country)".
The new rule also outlaws commingling of muscle cuts from different regions. The USDA said that practice allowed slaughterhouses and place one label on beef with two or more origins of meat when they’re processed on the same day. USDA said removing that allowance provides more detailed information for consumers on the birth, raising and slaughter of an animal.
Producer groups, and lobbyists for U.S. trade partners, say surveys reflect that consumers are less interested with the origins of their muscle cuts – and are more concerned about price.
Dr. Jim Robb, director at the Livestock Marketing Information Center, said the COOL issue ranks only behind the BSE outbreak and the passage of the North American Free Trade in its potential economic impact upon modern U.S. beef production.
"It' s not a labeling issue, Canada and Mexico are more than willing to put a label on their beef," he said. "It’s really about animal flows into North America. Once you start putting on a label for where born, where processed, then you begin putting on a whole set of proof issues. The question is how do you fundamentally enforce this.
"Clearly for U.S. packers processing cattle, this is a costly system of segregating and enhanced discounting the price of animals that come from Canada and Mexico."
The mandatory regulation went into effect May 23, but a six-month "industry education and outreach program" will be run to enforce the rules.
In its response to the USDA, Canadian trade officials told Reuters it would ask WTO to approve tariffs on a variety of U.S. exports to the north ranging from meat and cherries, to rice and potatoes – with many of those products coming from states with elected representatives who support COOL. 
