The United States can avoid retaliatory trade penalties from Canada only by repealing its controversial country-of-origin labelling law, said Canadian agriculture minister Gerry Ritz.
A complex bureaucratic process, as well as competing bills now before the U.S. Senate, mean changes may not come in time for the Senate’s summer recess, which starts Aug. 10.
“The only way for the U.S. to avoid retaliation is is for the U.S. Senate to follow the lead of the House of Representatives and senator (Pat) Roberts and put forward legislation that repeals COOL once and for all,” said agriculture minister Gerry Ritz in a statement July 29.
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Before the law can be repealed, the U.S. Senate must make a series of changes, but the short time left before recess may be a problem with two competing bills tied up in the system.
“We will have to wait and see if anything emerges in the next week but it does seem unlikely,” said John Masswohl of the Canadian Cattlemen’s Association.
Senators Debbie Stabenow of Michigan and John Hoeven of North Dakota introduced the Voluntary Country-of-Origin Labeling and Trade Enhancement Act of 2015 on July 23.
It is designed to prevent retaliatory trade sanctions by Canada and Mexico, yet still allow country-of- origin labelling of beef, pork and chicken produced in the United States. Canada has said the proposal is unacceptable and it would re-spond with heavy tariffs on a number of American products entering the country.
Meanwhile, another bill that was passed in the House of Representatives earlier this year was also introduced to the Senate and the two must be reconciled before any changes can go back for a vote.
The World Trade Organization ruled in 2012 that COOL was discriminatory to Canadian hog and beef exports. A fourth and final ruling by the WTO last May reaffirmed that COOL is inconsistent with international trade rules, paving the way for retaliatory tariffs.
The WTO arbitration panel will meet in September to decide what tariffs may be allowed.
