Livestock producers on both sides of the Canada-United States border are urging the American government to mend its ways and change country-of-origin labelling rules.
In briefs filed with the U.S Department of Agriculture by the April 11 deadline for comment, the Canadian Cattlemen’s Association, Canadian Pork Council and the U.S. National Pork Producers’ Council called on the American government to comply with World Trade Organization demands for COOL changes.
If the USDA does not comply by May 23, Canada and Mexico can an-nounce retaliatory tariffs against U.S. imports, although their implementation could be a year or more away.
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Canadian agriculture minister Gerry Ritz says based on industry estimates of COOL-related losses, Canadian retaliation could be worth $1 billion annually.
The threat spurred the NPPC to action with a plea for a government change of heart.
“The United States must avoid retaliation from Canada and Mexico,” NPPC president Randy Spronk said in a news release issued April 11 after the group filed its formal comments. “The United States should make sure our meat labelling law complies with our international trade obligations. Retaliatory tariffs on pork by Canada or Mexico would be financially devastating to U.S. pork producers.”
The Canadian pork industry estimates loss of sales or price depression because of COOL has cost producers $500 million annually since 2008.
The CCA estimates the cost to its industry at $639 million annually, or $25 to $40 per head.
The cattle producer lobby called on the USDA to withdraw changes it proposed March 12 as its answer to WTO calls for amendments to the rules. The Canadian industry insists the proposed changes would make the situation worse and increase costs to Canada.
It objected that the administration did not provide analysis to justify its argument that the rules it proposed would meet WTO objections.
All three livestock groups urged the U.S. last week to change the mandatory requirement for labelling of product containing meat from animals born or raised in a foreign country. Instead, all meat processed in a U.S. plant should be considered American product, they said.
In its comments, the Canadian Pork Council argued that beyond retaliation, the American industry and consumers would pay a price.
“The proposed regulatory rule will exacerbate the problem for Canadian exporters while reducing the competitiveness of the U.S. meat industry due to the lack of adequate supply to maintain throughput and competitive costs” said the CPC statement.
“This will result in a significant loss of American jobs from the closure of livestock processing facilities and will almost certainly raise meat costs to American consumers.”
