Canada urges US to repeal meat labelling after $1 billion WTO ruling

An arbitrator for the World Trade Organization on Monday authorized $1.01 billion in retaliatory tariffs on USA goods and products over a dispute stemming from American meat-labeling requirements that the trade authority deemed discriminatory.

Johnson said, “Congress now only has one clear path forward for ensuring USA regulations are in compliance with the WTO while preserving a meat label with integrity, and that solution is voluntary COOL. Canada and Mexico are also the top trading partners for the three states represented by the five senators”, according to Food Safety News.

Canada and Mexico have argued that country of origin labeling, known as COOL, has led to fewer of their cattle and pigs being slaughtered in the United States. But they were opposed by meatpackers who said they required costly paperwork.

The Republican chair of the U.S. Senate’s agricultural committee agreed with the Canadian position, and said he will push for the lifting of the American “rules of origin” labelling provisions, which the WTO has previously said leaves Canadian and Mexican meat products at a disadvantage. Joni Ernst, R-Iowa, today said the ruling “sends a clear message that it is time to repeal this policy”, and many other Senate Republicans share similar sentiments, hoping to avoid economic retaliation while the matter is under GOP leadership.

“If it wasn’t already obvious, this decision by the WTO to allow Canada and Mexico to levy $1 billion of retaliatory tariffs on USA producers and small businesses should serve as the ultimate reality check”, he said in a statement. That would maximize the damage to the entire US economy. “I will continue to look for all legislative opportunities to repeal COOL”, he said. “We must prevent retaliation, and we must do it now before these sanctions take effect”, Roberts said. This is no longer a warning.

In June, Canada filed a request with the WTO to impose $3 billion worth of retaliatory tariffs against the United States because of COOL.

Without legislation to repeal COOL, retaliation will begin in mid-December.

It’s being called a big win for Canada’s beef and pork sectors.

“America’s pork producers need congressional lawmakers to recognize the imminent harm our economy faces”, said National Pork Producers Council president Dr. Ron Prestage, a veterinarian and pork producer from Camden, S.C. “Retaliation has been authorized, and our exports to the No. 1 and No. 2 markets will suffer and so will USA farmers, business people and consumers”.

Colin Wooddall, vice president, government affairs, for the National Cattlemen’s Beef Association, agreed. Congress strengthened it in 2013, even as Canada and Mexico were challenging the policy at the WTO.