Canada Seeks $3B in Retaliatory Tariffs Against U.S. Over Meat Labelling

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Foreign Affairs, Trade and Development Canada Jun 04, 2015

U.S. must repeal COOL measures that continue to harm Canadian livestock industry

The Honourable Ed Fast, Minister of International Trade, and the Honourable Gerry Ritz, Minister of Agriculture and Agri-Food, today announced that Canada will seek World Trade Organization (WTO) authorization to impose over $3 billion in retaliatory measures against U.S. exports to Canada.

Canada’s request for authorization to retaliate, filed today with the WTO, will be considered by the WTO Dispute Settlement Body on June 17, 2015.

On May 18, 2015, the WTO ruled for the fourth time against the U.S. country of original labelling (COOL) requirements, reaffirming Canada’s long-standing position that these measures violate the U.S.’s international trade obligations and discriminate against Canadian cattle and hogs. The decision was final and without the possibility of further appeal.

With the final WTO decision, the Canadian government once again calls on the United States to immediately repeal the COOL measures on beef and pork to meet its trade obligations or face retaliation.

Since the implementation of the U.S. COOL requirements in 2008, producers and processors on both sides of the border have been harmed by this unnecessary trade barrier. Damages to the Canadian livestock industry are estimated to be more than $3 billion annually, and Canada will ask the WTO for authority to impose retaliation measures up to that amount. Once WTO authorization is received, Canada will choose how and when to retaliate.

Quick Facts

• In June 2013, Canada released a proposed list of U.S. imports targeted for retaliation.
• Canada will seek WTO authorization to impose $3.068 billion per year in retaliatory measures against U.S. exports to Canada.
• Canada and the United States enjoy the strongest bilateral trading relationship in the world, with two-way trade in goods and services surpassing $870 billion last year.
• In 2014, agriculture and agri-food trade between Canada and the United States was $51 billion.

Quotes

“Despite the WTO’s final ruling that U.S. country of origin labelling measures are discriminatory, the United States continues to avoid its international trade obligations. Our government will now move ahead under the WTO process and seek authorization for over $3 billion in retaliation. We continue to call on the United States to repeal COOL, cease this harmful policy and restore our integrated North American supply chain to the benefit of businesses and workers on both sides of the border.”

- Ed Fast, Minister of International Trade

“The WTO has ruled that the United States is out of options and out of time. The only way for the United States to avoid billions in immediate retaliation is to repeal COOL.

“Our government will continue to stand on the side of Canadian farmers and ranchers, and we will continue to protect all hardworking Canadians throughout this retaliatory process.”

- Gerry Ritz, Minister of Agriculture and Agri-Food

Associated Links

• Statement by Canada and Mexico on U.S. Country of Origin Labelling (May 18, 2015)
• Statement from Ministers Fast and Ritz on U.S. Country of Origin Labelling (May 18, 2015)
• WTO Appellate Body Decision (May 18, 2015)
• 2013 Canada Gazette notice seeking comments on the proposed list of targeted U.S. imports (archived on the Web)