Canada is asking the World Trade Organization for permission to impose more than $3 billion a year in trade tariffs on products imported from the United States.
It is the latest move in an ongoing dispute over the labelling of Canadian meat. Ottawa is making the move because the U.S. has not repealed a discriminatory law that requires ‘country-of-origin’ labelling stating where livestock was born, raised and slaughtered, before it can be sold in the United States.
The Canadian meat industry claims the U.S. law violates trade agreements and has cost them billions of dollars. Supporters of the labelling say consumers have a right to know where their meat comes from.
On May 18th, the WTO agreed with Canada and Mexico in their objections to what they see as protectionist measures. Following this 4th win at the WTO, Canada is ready to impose tariffs on a wide range of products including, fruit, vegetables, grains, pasta, chocolate, baked goods, prepared food, liquor, wine, and jewellry and furniture.
“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,” Trade Minister Ed Fast said in a statement, “Our government will now move ahead under the WTO process and seek authorization for over $3 billion in retaliation.”
“The WTO has ruled that the United States is out of options and out of time,” Agriculture Minister Gerry Ritz added. “The only way for the United States to avoid billions in immediate retaliation is to repeal [the law].”
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