Canada, Mexico Greatly Inflate COOL Impact

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By U.S. Trade Representative , Iowa Farmer Today Aug 18, 2015

On July 10, 2015, Canada and Mexico put forth methodology papers each reflecting a flawed economic methodology that severely overestimates the level of nullification or impairment attributable to the country-of-origin measure, as amended. Without clear analysis or appropriate estimations of the level of nullification or impairment, these methodology papers request authorization for extremely high levels of suspension of concessions and related obligations.

Canada alone argues that the level of suspension should equal CDN $3.068 billion (U.S. $2.41 billion) per year, while Mexico argues that the level of nullification or impairment is equal to $713 million per year. . . .

First, with respect to the calculated trade effect, Canada calculates “export revenue losses” to be CDN $2.045 billion (U.S. $1.61) annually. Canada’s total export value for affected livestock in 2014 was U.S. $1.744 billion (which was the second highest level after the level in 2007, which was before the economic recession) and Canada claims the value of its exports would increase by 92 percent, if the United States came into compliance with the Dispute Settlement Body’s recommendations and rulings.

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