Ottawa is signalling a change in tactics in its fight against American country-of-origin labelling legislation.
The federal government is now musing about a challenge at the World Trade Organization rather than through the North American Free Trade Agreement.
As well, high level talks continue with American government and industry officials to try to have the COOL regime changed.
During an Asia Pacific leaders’ meeting in Peru in late November, prime minister Stephen Harper raised the issue directly with U.S. president George Bush.
Read Also
New coal mine proposal met with old concerns
A smaller version of the previously rejected Grassy Mountain coal mine project in Crowsnest Pass is back on the table, and the Livingstone Landowners Group continues to voice concerns about the environmental risks.
Agriculture minister Gerry Ritz said those contacts will continue even as Canada prepares a challenge. During the election campaign, he talked about a NAFTA challenge.
“I think now we are more predisposed to a WTO challenge at this point, but we’ll want to see how everything comes together as to which one works in the best interests of producers,” he said in late November.
The Canadian Cattlemen’s Association approves and wants it to happen now.
“We actually recommended the WTO route to the government,” said John Masswohl of the CCA.
“We think there are more avenues there, including technical barriers to trade rules, and the WTO has the disputes resolution machinery already. With NAFTA, there is always a wait while a panel is created.”
He said there is little likelihood of significant changes to the COOL rule, in part because president-elect Barack Obama was one of a group of senators that intervened to block an earlier attempt to amend it.
“We really don’t have much hope left that we can do something through consulting with the Americans, although in general we support those attempts,” Masswohl said.
“We need to move quickly on a trade challenge because it will take time and we are losing money and sales every day because of this.”
Masswohl said the CCA would like to see the process started this week.
Ritz said conversations with the Americans are only part of the government’s strategy in fighting COOL.
“We’re pulling every lever and pushing every button to try to mitigate the negative (effects) for Canadian producers,” he said.
“We will work with the Bush administration and we have started discussions with the Obama team as they take their place. But what this really signals to us is that we’ve got way too much product in the American basket. We’re moving on all fronts to reignite and reinvent markets around the world.”
Ritz said the recently concluded trade deal with Colombia is one example.
As well, he has scheduled a trip to India to promote more agricultural trade, including greater markets for Canadian pork and pulse products.
