The Trans-Pacific Partnership will not prevent Canada from introducing retaliatory tariffs on American goods over the country-of-origin labelling dispute, say meat industry representatives.
In May, the World Trade Organization once again agreed with Canada and Mexico that American COOL rules are discriminatory and obstruct imports of cattle and hogs into the U.S.
The WTO ruling allowed Canada to pursue retaliatory trade measures, potentially worth $3 billion, against the U.S.
Later this year, possibly early December, the WTO is expected to rule on the amount of tariffs that Canada can impose in protest of COOL.
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Gary Stordy, Canadian Pork Council spokesperson, said the U.S. and Canada are part of the TPP deal but language in the agreement doesn’t supersede the WTO or stand in the way of the proposed retaliatory tariffs.
John Masswohl, Canadian Cattlemen’s Association director of government and international relations, agreed with Stordy’s assessment, saying TPP will have zero impact on the tariffs.
Masswohl and others in Canada’s meat sector are more interested in Canada’s new Liberal government and whether the party will honour its commitments on COOL.
Prior to the election, the Liberals provided written responses to CCA questions on beef industry issues.
In regards to COOL and retaliatory tariffs, the Liberals said:
“It constitutes nothing more than a trade infringement on a long established bilateral trade arrangement. Liberal government will follow through with an aggressive response to ensure that the United States adheres to the ruling of the WTO.”
Masswohl said the CCA wants to know the Liberals plan for COOL and retaliatory tariffs as soon as possible.
“I would say that would be our top, immediate priority,” he said. “A week and a half ago the pro-COOL groups in the U.S. were saying, ‘hang on, there’s a new government in Canada. Maybe they’ll like COOL.’ … We need the Americans to hear very soon from the minister of agriculture and the minister of trade what they intend to do when the WTO gives it’s ruling in early December.”
It’s also a Pork Council priority, Stordy said.
“It’s one of things we will be raising … when given the opportunity to speak to any member of the new Liberal government.”
All of the Liberal party responses on beef industry issues can be found on the CCA website.
The full text of the TPP was released yesterday and can be found at http://www.mfat.govt.nz/Treaties-and-International-Law/01-Treaties-for-which-NZ-is-Depositary/0-Trans-Pacific-Partnership-Text.php
Contact robert.arnason@producer.com
