When is a Canadian cow not Canadian?

That's the question Canada wants the World Trade Organization to help answer.

On Tuesday, the federal government asked the WTO to assist in solving a festering trade dispute concerning new meat labelling laws in the United States.

Canada wants the trade watchdog to hold consultations on the new U.S. rules, known as country-of-origin labelling, or COOL. The talks are a formalized effort to have the two countries solve the dispute between themselves.

If unsuccessful, Canada could make a formal trade complaint to the WTO, a process that is both expensive and time-consuming.

Disguised trade barriers

The new COOL rules, which came into effect Sept. 30, are just a hidden way of imposing unfair costs on exporters and barring meats from Canada and other nations from getting into the United States, Ottawa said.

“We believe that the country-of-origin legislation is creating undue trade restrictions to the detriment of Canadian exporters,” Minister of International Trade Stockwell Day said in a statement.

Washington brought in the new labelling laws to ensure that pork, beef and other meats given the "made in the USA" stamp-of-approval were actually raised in the United States.

But Canadian producers said U.S. facilities are refusing to accept Canadian beef or other meats, arguing the resulting food will not be eligible to carry the U.S. stamp.

"COOL is having a damaging impact on the prosperity of the Canadian cattle industry," said Brad Wildeman, president of the Canadian Cattlemen's Association, the country's major organization representing beef producers, in an October letter to Prime Minister Stephan Harper. "Some U.S. facilities will no longer accept Canadian livestock and most still do restrict acceptance to certain days and at reduced prices."

Under country-of-origin labelling, Canadian cattle and pigs must be segregated in U.S. feedlots and packing plants, prompting some firms to only deal with American livestock. Canadian animals are also required to have more documentation about where they come from, and in the case of cattle, the animals must have tags that indicate they are free of mad cow disease.

Sales slow

The Cattlemen's Association said that, at the end of November, only five out of 28 U.S. meat processing facilities would accept so-called C cattle, animals raised in Canada for immediate slaughter in the United States.

In addition, companies such as food giant Tyson Foods will accept B animals, which are born in Canada and fed in the United States, but at a discounted price, the association said.

The group did point out, however, that U.S. plants located far from the Canadian border do not usually process Canadian animals.

with files from the Associated Press