NAMI: US Receives Well-Deserved ‘Lump Of Coal’ From WTO Over COOL Rule

U.S. Sen. Joni Ernst (R-IA) responded on Monday to an official World Trade Organization (WTO) ruling on retaliation tariffs that Mexico and Canada may seek against the U.S. for mandatory Country-of-Origin Labeling (COOL). WTO first ruled against COOL in 2011. “At a time of overall softening in the USA farm economy due to a drop-off in export demand, we can not afford further erosion in income resulting from the unnecessary loss of markets that would result from the WTO sanctions”.

Keep in mind that Canada and Mexico are two of the top three export destinations for USA beef, accounting for over $2 billion in sales and almost one-third of total US beef exports. It ruled Monday that Canada could impose $780 million in retaliatory tariffs and Mexico could impose $228 million. It is interesting to note that industry groups were successful in June in getting the House of Representatives to repeal the COOL law, but the Senate has never taken any action on the law, according to Capital Press. USA dairy products are expected to be among the mix of items targeted for retaliation.

Ranchers in the northern US states that compete with Canadian beef urged adoption of COOL in the early 2000s and it was bolstered by mad cow disease found in British beef. “Now more than ever we need to repeal COOL”, he added. Canada has already said that possible targets for retaliatory tariffs could include foods like frozen orange juice, ketchup and of course, beef. “Time is critical. Contact your members of the U.S. Senate and tell them to support the repeal of COOL”. “As the Canadian and Mexican governments prepare to impose these tariffs we are reminded of the sage prophet, Pogo, who said, ‘We have met the enemy and he is us'”.