Senator Stabenow (D-Mich.) introduced legislation today that fails to fix mandatory Country-of-Origin labeling, driving the United States even closer to the forthcoming trade war with Canada and Mexico. With four decisions against the law, the World Trade Organization will soon allow Canada and Mexico to impose over $3 billion worth of retaliatory tariffs annually on an array of U.S. commodities. Philip Ellis, National Cattlemen's Beef Association president, said Senator Stabenow's amendment does not address all the issues with the program, and therefore is not a viable solution.
"The ten-year cost of COOL is over $8 billion according to the USDA, and we are now facing retaliation by two of our largest trading partners for violating our international trade obligations," said Ellis, a rancher from Chugwater, Wyo. "The Canadian and Mexican governments have already stated a voluntary label does not fix the issue and they will pursue retaliation. Our country is about to be heavily taxed on commodities ranging from wine, to apples and even jewelry and furniture, because we have not held up our end of our trade deals. Instead of providing a fix, Senator Stabenow is perpetuating the problem and forcing us to face retaliation."
Overseen by USDA'S Agricultural Marketing Service, mandatory Country-of-Origin labeling is a marketing program, separate from any food safety regulations, which intended to drive demand for U.S. beef. However, unlike industry-led efforts, the government-mandated program failed to increase demand for U.S beef and is leaving cattle producers, packers and retailers bearing the cost of a failed experiment. Canada and Mexico account for over $1 billion each in U.S. beef purchases - money that goes directly into the pockets of America's producers. To lose access to these two countries due to tariffs levied because of COOL could cost U.S. cattle producers $115 to $120 per animal sold.
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