VTrade retaliation is now a serious prospect after the World Trade Organization decisively came down in favour of Canada and Mexico in their fight against U.S. Country of Origin Labelling on beef and pork.
The WTO’s appellate body rejected the United States’ arguments in a decision May 18. It is the fourth time the United States has lost on the issue before the WTO and they have run out of appeal options.
Federal Agriculture Minister Gerry Ritz, a vocal critic of COOL, and International Trade Minister Ed Fast issued a joint statement on the ruling.
“For the fourth time, the WTO has ruled against the United States’ COOL policy, reaffirming Canada’s long-standing position that these measures are blatantly protectionist and discriminate against Canada,” the statement read.
“The decision is final, without the possibility of further appeal.
“The United States has used and exhausted all possible means to avoid its international obligations, damaging our highly integrated North American supply chain and hurting producers and processors on both sides of the border.
“Once again, we call on the United States to cease this harmful policy and repeal COOL’s provisions against beef and pork, removing this unnecessary trade barrier.
“In light of the final ruling, and due to the fact that the United States has continued to discriminate against Canadian livestock products, Canada will be seeking authority from the WTO to use retaliatory measures on U.S. agricultural and non-agricultural products.
“In June 2013, Canada released a proposed list of targeted U.S. imports, and we are now preparing our request to retaliate.
“Our government stands on the side of Canadian farmers and ranchers, and we will continue to protect all hardworking Canadians throughout this retaliatory process.”
In a news release the day after the ruling, Ritz again called on the United States to repeal its COOL policy or face retaliatory measures.
"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 Ritz .
Ritz reiterated that the government would seek the retaliatory measures, adding “we will continue to defend the interests of our cattle and hog sectors while protecting all hardworking Canadians through this process."
"The World Trade Organization has yet again reaffirmed Canada’s long-standing position that the U.S.’s COOL measures are blatantly protectionist and discriminatory,” said Fast.
“We call on the U.S to cease this harmful policy and restore our integrated North American supply chain, benefitting businesses and workers on both sides of the border."
Those involved in the cattle and pork industries welcomed the final WTO decision.
"This is a significant victory for Canada’s cattle industry,” was the statement from Dave Solverson, president of the Canadian Cattlemen’s Association.
“With the unfair discriminatory nature of U.S. mandatory COOL confirmed a fourth and final time by the WTO, Canadian cattle producers expect that either the U.S. will repeal COOL or Canada will exercise its right to retaliate.”
Rick Bergmann, chair, Canadian Pork Council, also welcomed the WTO ruling and called for changes.
"The U.S. has now lost four times at the WTO and has no other appeal options. It is time that the negative impact of COOL on Canada’s exported livestock is recognized by Congress and that they fix the legislation."
