Federal agriculture minister meets with U.S. counterpart Legislation costs Canadian beef and pork industries $1 billion a year
Country-of-origin labelling came into full force in the United States Nov. 23, and Canada continues its objections.
The rule has cost the country’s cattle and hog industries an estimated $1 billion per year.
Federal agriculture minister Gerry Ritz met with U.S. agriculture secretary Tom Vilsack last week in efforts to encourage COOL repeal in the U.S. farm bill now being debated in Washington, D.C.
“The damages will significantly increase under the amended rule that takes effect this Saturday,” said Ritz in a Nov. 21 conference call from the U.S. capital.
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“Canada will continue the pressure to get COOL repealed,” he said.
“Each day represents lost or discounted sales opportunities.”
Ritz said Vilsack continues to support COOL, but Canada, its livestock industries, the U.S. meat sector and a growing number of U.S. federal legislators object to it because of trade discrimination and potential job losses in the meat packing sector.
“There’s a growing recognition that this is a political fix for a problem that does not exist,” said Ritz.
Tyson Foods has already announced it will no longer accept Canadian cattle because of the extra expense involved in segregation and labelling. Ritz said that means 3,000 head of livestock once destined for U.S.-based Tyson plants every week must now be slaughtered elsewhere.
As well, he said up to seven American meat packers are “running on fumes” because COOL can make it uneconomical to process Canadian cattle and hogs.
Ritz was in Washington with Alberta agriculture minister Verlyn Olson and representatives from the Canadian Cattlemen’s Association and the Canadian Pork Council.
“The most effective solution remains an amendment to the farm bill that repeals mandatory COOL for beef and pork, which would provide the requisite WTO compliance by eliminating discrimination against Canadian cattle and hogs,” CPC chair Jean-Guy Vincent said in a news release.
A World Trade Organization compliance panel was struck in late September to determine whether an amended version of COOL complies with international trading rules. The panel is not expected to make a determination until 2014.
Ritz said he is confident the WTO will once again rule in favour of Canada, and the country is ready to impose its list of retaliatory tariffs once allowed by the WTO process.
“If there’s no fix to COOL in the farm bill, then we stand ready to take retaliatory actions.”
Among those actions would be the application of tariffs to American beef and pork exported to Canada. Those exports are worth $2.2 billion annually.
A Nov. 21 news release issued by Vilsack outlined his key goals for the new farm bill. They include plans to “promote new markets for U.S. producers abroad and at home, honour our trade commitments and assist our farmers and ranchers to export a record amount of product around the world.”
