This report covers the dispute between the U.S with its neighbors Canada and Mexico, who say that the recent country-of-origin labeling (COOL) system implemented by the U.S. Department of Agriculture is unfair and does not meet its original objectives. This dispute was brought before the WTO dispute panel and found to be valid. The report ends with a discussion of options for the U.S. in regards to modifying COOL to follow WTO rulings.

In the 112th Congress, issues of concern related to the trade and economic relationship with Mexico have involved mostly economic conditions in Mexico, issues related to the North American Free Trade Agreement (NAFTA), the effect of NAFTA, and Mexican migration to the United States. This report provides an overview of Mexico's free trade agreements, its motivations for trade liberalization and entering into free trade agreements, and some of the issues Mexico faces in addressing its economic challenges.