Canada and Mexico to impose $3bn tariffs on US over meat labeling

Monday, Jun 08, 2015

Canada and Mexico will move World Trade Organization (WTO) for authorization to slap $3bn in tariffs against the US, as a retaliatory trade measure over meat packaging.

The bone of contention is the 2009 laws, which, according to Canada and Mexico, have made their products expensive in the US.

Such legal provisions mandated the retail shops to use detailed country-of-origin labels on beef, pork and other meat packages for information on the source of the product.

However, the WTO has ruled against the US over the country-of-origin labeling (COOL) rules. It was upheld that such provisions discriminated against cattle and hogs from Canada and Mexico.

Canada has sought $2.47bn from the US under punitive measures. In a separate bid, Mexico will also go ahead with $653m in sanctions.

The WTO's dispute-settlement body is set to give the matter an ear on June 17.

Meanwhile, the US legislators have hinted to scrap the 2009 law that prompted Canada to seek an authorization from the WTO to impose the punitive measures.

Canada has also brought wine, maple syrup, ketchup, furniture, various fruits and vegetables, grains, pasta, jewelry, baked goods, adjustable swivel seats, and frozen orange juice within the purview of sanctions.

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