Canada and Mexico may impose tariffs worth $1 billion onto U.S.-traded products, a World Trade Organization panel ruled on Monday, as the countries prepared to retaliate over the United States’ meat-labeling rules.
Advertisement
Anticipated retaliation against the U.S.by Canada and Mexico over country of origin labeling of meat became a reality on Monday with authorization by the World Trade Organization. Canada and Mexico have already challenged the policy, which they call protectionist, at the WTO four times.
Nebraska 3rd District Congressman Adrian Smith says the WTO ruling makes it crucial that Congress repeal COOL – even though he supports the law and disagrees with the WTO decision that it’s an improper limit on imports. “Country of origin labelling harms Canadian and Mexican livestock producers as well as USA processors and producers”.
The WTO decision gives Canada a green light to seek approval for US$780.9 million in retaliatory tariffs, with Mexico allowed to seek US$227.8 million.
“It’s just all been shell game down in the USA administration and that has not helped their cattle industry or the hog industry in any ways, means or form”, Bezan said. “In the meantime, if Canada and Mexico take steps to raise import duties on USA exports, it will only harm the economies of all three trading partners”.
Republican Sen. Pat Roberts, the agriculture committee chair, urged his fellow lawmakers to finally do away with the COOL provisions. “The WTO has ruled that we face over $1 billion in annual retaliation if the Congress doesn’t act immediately to repeal this law”, said Chairman Conaway.
It has cost the US livestock industry billions in implementation, has violated USA trade agreements with two of its largest export markets, has resulted in the closure of several US feedlots, and has had no effect on the price or demand of US beef, he said.
“We have had literally years to fix this problem and have not done so, and now we face a billion dollar penalty”, he said. This is no longer a warning.
Without legislation to repeal COOL, retaliation will begin in mid-December.
The WTO decision essentially ends a seven-year dispute over the COOL rule that affects beef and pork products. The Geneva-based agency’s dispute settlement body didn’t grant Canada and Mexico the full sum of tariffs they were seeking – instead ruling their export losses to date were less than claimed.
Advertisement
Colin Wooddall, vice president, government affairs, for the National Cattlemen’s Beef Association, agreed.
