Canada and Mexico might impose $3bn sanctions on US over country-of-origin labelling

Canada and Mexico have informed the World Trade Organization (WTO) that they will impose sanctions amounting to $3bn against the US in retaliation to its country-of-origin labeling (COOL) rules for meat packages.

The announcement follows a recent WTO ruling that upheld the claim of the two countries allowing them to impose the trade sanctions. However, both the countries claim that the US has continued implementing its COOL requirements illegally.

Canada’s Trade Minister Ed Fast said in a statement: "The amended COOL measure, which causes Canadian and Mexican livestock and meat to be segregated from those of US origin, is damaging to North America’s supply chain and is harmful to producers and processors in all three countries.

"In light of the WTO’s final decision, and due to the fact that this blatantly protectionist measure remains in place, our governments today are asking the WTO for a special Dispute Settlement Body meeting to request retaliation rights against the United States, to take place on June 17.

"Canada will request authorisation from the WTO to impose over C$3bn in retaliatory measures against the US, while Mexico will seek authorisation for over $653m."

Meanwhile, it is being expected that US legislators will repeal the 2009 law that makes it mandatory for meat producers to identify the place of origin for animals, along with the place where they are raised and slaughtered. The information needs to be printed on the packages that are sold in grocery stores.

After the implementation of the rule, both Canada and Mexico had filed suits at the WTO, saying that the rule was discriminatory and hurt their business by increasing expenses while decreasing the value of their livestock.

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Image: Canada and Mexico claim that the US country-of-origin labeling (COOL) rules for meat packages discriminates against their products. Photo: courtesy of taoty/freedigitalphotos.net.