The Agri Post
June 26, 2015
Manitoba Pork Hopes for Speedy US Repeal of COOL By Harry Siemens
Canada Files Retaliation Request with WTO By Les Kletke Federal Agricultural Minister Gerry Ritz wants the US to stop dragging its feet and repeal the Mandatory Country of Origin Labelling (M-COOL) legislation. The US is out of options and retaliation cannot be avoided by drawing out the WTO process. Canada is disappointed that the US is attempting to prolong the WTO process by requesting arbitration,” said Ritz in a statement released Jun 17. In early June the Minister of International Trade, Ed Fast announced that Canada requested authorization from the World Trade Organization (WTO) to retaliate after the US was handed a 4th ruling against the US retaliation. Since it was implemented in 2008, the estimated to cost Canada’s livestock industry has been $3 billion annually. Last year agricultural trade between the two countries topped $51 billion. The trade relationship between the two countries has long been regarded as the largest in the world trading in goods and services that surpass $870 billion last year. Canada has requested to impose $3.068 billion per year in retaliatory measures against the US. “Despite the WTO’s final ruling that the US country of origin labelling measures is discriminatory, the United States continues to avoid its international trade obligations,” said Fast. “Our government will now move ahead under the WTO process and seek authorization for over $3 billion in retaliation. We continue to call on the United States to repeal COOL.” Ritz has made it clear that he supports the move to seek retaliatory action against the US. No one is sure where a trade dispute could end up and the Americans rely heavily on the Canadian market. It is the top agricultural export market for 29 US states and in the top 5 for 48 of the states. Canada did publish a list of the commodities, which could be impacted in the Canada Gazette in June of 2013. Ritz said that Mexico is getting involved as well. Mexico has long argued the impact of COOL on its livestock industry as well.
Ag Minister Gerry Ritz is calling for fast action by the US to repeal COOL or Canada will retaliate.
“The Canadian and Mexican governments will continue to work closely to resolve this important trade issue with the United States in order to defend our farms and ranchers and maintain jobs and economic prosperity throughout America,” said Ritz. Reaction within America has been mixed with some groups calling on the government to move quickly to resolve the issue while others like R-CALF say it should stay in place. On June 10, the House of Representatives in a vote 300 to 131 voted to repeal the mandatory country of origin labelling requirements for beef, pork and poultry. The legislation would still leave in place country-of-origin labelling requirements for several other commodities, including lamb, venison, seafood, fruits and vegetables and some nuts. “The only way for the United States to avoid billions in retaliation by late summer is to ensure legislation repealing (country of origin labelling) passes the Senate and is signed by the president,” said Ritz.
Andrew Dickson General Manager of Manitoba Pork is hoping for change, soon. Dickson, just back from a trip to Washington DC said the Americans took the first step when the US House of Representatives voted with a huge majority to repeal the COOL for pigs and cattle. “For the last three days I was in Washington with a small group from the Canadian Pork Council and we went around to 20 different offices of the senators and representatives in the US congress,” said Dickson. “It is very clear to us that it would pass by a good margin in the House, the repeal of COOL for beef, pork, and chicken.” He hopes strong Congressional support for the repeal of COOL will prompt similar action in the US Senate. Facing the threat of retaliatory tariffs on a wide range of products exported from the United States into Canada and Mexico, the US Congress voted, by a margin of 300 to 131, to repeal Mandatory US Country of Origin Labelling. Unfortunately, with the senate, it is a different scenario. Both houses have to propose legislation, and they are not necessarily in concert when they do this. They come together in what they call a conference and agree to final legislation. Dickson is hopeful the strength of the Congressional vote, combined with growing pressure from US industry, will influence the Senate to pass a similar bill. “Some major business coalitions have come together to oppose COOL, and not just farm organizations like the American Farm Bureau which finally said COOL needs to be fixed,” he said. “But major trade associations of companies on that target list, and they are coming forth and saying to the US government and to the Congress, get this matter fixed quickly.” “This is interfering in business, it’s going to affect jobs, it’s going to hurt people’s incomes, livelihoods on both sides of the border, and over a matter that can be easily resolved by simply repealing the legislation.” Dickson anticipates major pressure on the Senate to deal with the issue before it breaks for its summer recess. He noted that if action is delayed, senators could be left with too little time when they return in September to act before tariffs take effect.
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