WTO sides with Canada and Mexico
By Diego Flammini, Farms.com
For the fourth time, the World Trade Organization (WTO) has ruled in favour of Canada and Mexico, agreeing that the United States and their COOL (Country Of Origin Labelling) measures discriminate against Canadian and Mexican livestock and pork products.
As a result, Canada is now calling on the WTO to allow for tariffs on some exports to the United States – which could impact trade relations.
Some of the items that could be taxed upon export to the United States include maple sugar, maple syrup, live bovine and swine, corn and pasta.
"The WTO has been clear - the United States administration must end its discriminatory COOL policy that is causing hurt to beef and pork industries on both sides of the border,” said Agriculture Minister Gerry Ritz. “Our Government is now seeking authority from the WTO to impose retaliatory measures against United States exports. We will continue to defend the interests of our cattle and hog sectors while protecting all hardworking Canadians through this process.”
COOL stems back to the 2002 American Farm Bill. It requires packaged meats to say where the animal was born, raised and slaughtered. However, because some ground meat packaging is mixed with products from Canada and Mexico, it’s difficult to do so.
The estimated impact of the COOL controversy is estimated at $1 billion annually according to the Canadian livestock industry. They too, are happy with the WTO’s decision.
“This is a significant victory for Canada’s cattle industry,” said Dave Solverson, President of Canadian Cattlemen’s Association.
“The U.S. has now lost four times at the WTO and has no other appeal options,” said Rick Bergmann, Chair of Canadian Pork Council.
Join the conversation and tell us your thoughts on the WTO’s decision to deny the USA’s appeal on COOL. As a Canadian producer are you encouraged by the decision?