Will The US Back Down Now?

Ottawa to retaliate against ‘illegal’ U.S. meat labeling rules

BARRIE MCKENNA

OTTAWA — The Globe and Mail


Published Friday, Jun. 07 2013, 1:37 PM EDT

Last updated Friday, Jun. 07 2013, 3:05 PM EDT



Canadians could be paying more for imported U.S. wine, ketchup and chocolate bars as the federal government prepares to retaliate against meat labeling rules deemed illegal by the World Trade Organization.

The items are on a hit-list of 38 possible targets for punitive tariffs unveiled Friday by the federal government.


The list includes a wide range of mainly agricultural and food items, ranging from live pigs to cookies and California chardonnay. Also on the list are mattresses, wooden furniture and swivel chairs.

“Despite consistent rulings by the World Trade Organization, the U.S. government continues its unfair trade practices, which are severely damaging to Canadian industry and jobs,” Trade Minister Ed Fast and Agriculture and Agri-Food Minister Gerry Ritz said in a joint statement. “Our government is extremely disappointed that the United States continues to uphold this protectionist policy . . . and calls on the U.S. to abide by this WTO ruling.”

Ottawa isn’t yet saying how much it hopes to reap from the punitive tariffs. But Canadian hog and cattle producers have estimated that U.S. country-of-origin labeling rules have cost it more than $1-billion a year in lost sales, higher costs and depressed prices.

The move is the latest chapter in a long-running dispute that began in 2008, when the U.S. required grocery stores to put country-of-origin labels on meat and other products.

The WTO ruled last year that the country-of-origin rules discriminated against Canada and Mexico. The U.S. had until last month to bring its regulations into line with the WTO.

The Obama administration responded by modifying the labeling requirements, which it says are designed to help consumers make more informed food choices.

Canada insists they remain afoul of WTO rules.

The Canadian Pork Council (CPC) says that the new rule “increases the discrimination against imported animals.”

“The U.S. is making a mockery of the WTO rules,” said Rick Bergmann, first vice-chair of the CPC.

The labelling rules have been devastating for Canadian cattle and hog producers, which saw exports drop by more than 40 per cent as U.S. food producers found it cheaper to source meat at home rather than track it through a long cross-border food chain.

The rules, for example, require that Canadian-raised animals remain segregated from U.S. hogs and cattle at slaughtering facilities and meat processing plants.

Ottawa said it will soon publish the retaliation list in the Canada Gazette – the first step in a process that could take as long as two years to resolve.

Federal officials said they won’t impose retaliatory duties until authorized by the WTO.