The World Trade Organization says Canada and Mexico can implement tariffs just over $1 billion because of the U.S. Country of Origin Meat Labeling law. An arbitration panel announced the final ruling, which says COOL requirements have cost the U.S. trading partners more than $1 billion.
That figure is less than what Canada and Mexico were seeking at $3 billion as the WTO said the export losses were less than claimed by the two countries.
The dispute stems from a 2009 U.S. requirement that retail outlets label food to give consumers information about its origin.
Canada welcomed the rule and a Canadian agriculture official said “If the U.S. Senate does not take immediate action to repeal COOL for beef and pork, Canada will quickly take steps to retaliate.”
The WTO decision gives Canada a green light to seek approval for $780.9 million in retaliatory tariffs, with Mexico allowed to seek 227.8-million, according to Bloomberg.
