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Canada Set to Impose 100 Percent Surtax on U.S. Imports
McCarthy Tétrault May 24, 2015
The World Trade Organization's Appellate Body upheld the finding of an October 14, 2014 compliance panel ruling that the U.S. revised country-of-origin labeling (COOL) rules for importations of meat from Canada and Mexico was inconsistent with Article 2.1 of the Agreement on Technical Barriers to Trade (TBT), which requires WTO members' regulations to treat imports in a manner that is "no less favorable than that accorded to like products of national origin and to like products originating in any other country."
This Appellate Body's decision cannot be further appealed. It must now be adopted by the WTO Dispute Settlement Body (“DSB”) which will likely occur at the end of June, 2015. Thereafter Canada will be free to proceed to request authorization from a WTO arbitrator to determine the level of nullification and impairment, or damage, caused by the COOL rules to Canadian exports of meat.
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