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Canada Preparing to Impose Retaliatory Duties on U.S. Imports
Lexology.com Jun 13, 2013
On Friday, June 7, 2013, Canada's Ministers of International Trade and of Agriculture and Agrifood, released a list of U.S. commodities that are being considered for possible retaliation in Canada's ongoing dispute with the United States over its country of origin labelling rules for beef and pork. In the past, retaliation has taken the form of a 100% surtax on specific imports, so the announcement is important to Canadian importers of U.S. goods and to U.S. exporters. The list, which is not final, is to allow the Canadian government to consult with industry on which U.S. commodities should be targeted for retaliation.
In December, 2012, following four years of litigation, a WTO arbitration panel ruled that the U.S. should bring its country of origin requirements into conformity with its WTO obligations by May 23, 2013. While the U.S. did implement changes to its rules, Canada considers that the revised requirements continue to violate WTO law. In fact, the Canadian Pork Council and the Canadian Cattlemen's Association have lambasted the latest U.S. changes as being even more discriminatory against Canadian exports.
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