American industry official is confident labelling rule will be repealed before Canada takes retaliatory measures
WINNIPEG — Finding a resolution for the country of origin labelling dispute between Canada and the United States could come down to the final hour, says the president of a prominent U.S. beef organization.
The National Cattlemen’s Beef Association president Philip Ellis said his group favours a repeal before retaliatory tariffs from Canada and Mexico come into play later this fall.
“When we get to the cliff, I do not believe we will go over the cliff. I believe we will have repeal,” said.
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“We are hopeful it will happen in September,” he told the Canadian Cattlemen’s Association semi-annual meeting in Winnipeg last week.
The U.S. House of Representatives voted overwhelmingly to repeal the law but the Senate has been more reticent.
“The fact that we had 300 members of the House of Representatives vote should not be taken lightly,” said Kent Bacus, NCBA director of legislative affairs in Washington, D.C.
“When you look at what is happening in the Senate, this is not about debating the merits of COOL. It is about saving face.”
The Senate has two competing bills. One calls for complete repeal and another proposes a voluntary program where red meat could still be identified as born, raised and slaughtered in the U.S.
Packing companies in the U.S. argue the latter plan is not workable because they would still have to separate imported animals and carcasses, which is expensive and time consuming.
Canadian beef producers say those added costs make their product less attractive to American beef processors.
“We have evolved in thinking and there is a strong sign that the supporters of COOL have failed. It is no longer debating the merits of COOL. That ship has sailed,” Bacus said.
If the Senate fails to repeal COOL and tariffs are imposed, he said there will be a lot of finger pointing.
“This is not about the Senate versus the House. This is really about how can we claim victory or how can we not have the blame when retaliation sets in.”
The U.S. government is facing a shut down Oct. 1 unless a budget for the next fiscal year is passed and COOL will take a back seat to budgetary matters, said Bacus.
Canada has asked the World Trade Organization to authorize $3 billion worth of tariffs on U.S. products and Mexico has asked for $713 million in damages.
The U.S. has said those amounts are excessive. It told the WTO in a brief that $91 million for both countries is more reasonable.
“That is about three percent of what we feel the impact is,” said John Masswohl of the CCA.
The CCA estimates COOL has cost Canadian producers about $100 per head in lost revenue.
The argument has gone to arbitration and is expected to be heard in Geneva Sept. 15-16.
Representatives from the Mexican Cattlemen’s Association sided with Canada.
“We are definitely moving for retaliation as soon as we are granted permission by the WTO,” said Alejandro Gomez, legal counsel for the Confederacion Nacional de Organizaciones Ganaderas .
