Canada Poised to Retaliate Over COOL as Early as Late Summer, Says Ag Minister
Canada is preparing to retaliate with $3 billion in raised duties on U.S. exports as early as late summer after the World Trade Organization gives final retaliatory authorization in the long-running dispute over country-of-origin labeling on meat muscle cuts, said Agriculture Minister Gerry Ritz in a June 4 briefing with reporters. The remaining procedural hurdles at the WTO may prolong authorization for retaliation to late fall, however, said Ritz. Canada and Mexico, the complainants in the case, still need to meet a series of time-sensitive deadlines before the final go-ahead (see 1505270016).
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The $3 billion figure represents the amount of harm to Canada industry caused by U.S. COOL regulations. WTO appellate judges laid down the final rejection of the U.S. regulation in mid-May, again finding the law discriminates against foreign producers and products (see 1505180018).
Canada formally filed the request to retaliate on June 4, and Canadian officials are urging the WTO to consider the request at the next Dispute Settlement Body meeting on June 17, the Canadian government said in a statement. On the June 4 press call, Ritz pushed U.S. lawmakers to quickly repeal the COOL regime. “Its past time to close this chapter on COOL, and the U.S. knows it,” said Ritz. “We will not stop until COOL is history.” Ritz rejected suggestions of attempting to bring the U.S. back into compliance with global trade rules by passing a reformed version of COOL.
The full House is expected to move on a COOL repeal bill, HR-2393, during the week of June 8-12 (see 1506010047). Ritz praised the legislation and its sponsor, House Agriculture Chairman Mike Conaway, R-Texas. The bill was overwhelmingly approved by the committee (see 1505210017). Ritz said Senate Agriculture Chairman Pat Roberts, R-Kansas, is also an ally in the fight to repeal COOL. Industry representatives expect the Senate to be a much tougher fight for repeal (see 1505270016).
Canadian officials are reserving the right to change “at will” the retaliation list. The list currently targets not only agricultural products, but also processed foods, jewelry, articles of iron or steel, furniture and other products (see 13061022). Mexico will seek retaliation for more than $650 million in harm to its industry, Canada and Mexico said in a joint statement on June 4. The Mexican retaliation list is, as previously expected, likely to resemble retaliation in the NAFTA trucking dispute, said Ritz. That list includes a range of agriculture products, beauty and hygiene products, gas masks and plastic tableware, among many other goods.