[fullwidth background_color=”” background_image=”” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ background_repeat=”no-repeat” background_position=”left top” video_url=”” video_aspect_ratio=”16:9″ video_webm=”” video_mp4=”” video_ogv=”” video_preview_image=”” overlay_color=”” overlay_opacity=”0.5″ video_mute=”yes” video_loop=”yes” fade=”no” border_size=”0px” border_color=”” border_style=”” padding_top=”20″ padding_bottom=”20″ padding_left=”0″ padding_right=”0″ hundred_percent=”no” equal_height_columns=”no” hide_on_mobile=”no” menu_anchor=”” class=”” id=””][title size=”1″ content_align=”left” style_type=”underline solid” sep_color=”#000000″ margin_top=”” margin_bottom=”” class=”” id=””]U.S. lawmakers and ag industry stakeholders quick to respond after WTO authorizes $1.01 billion in retaliation in COOL dispute[/title][fusion_text]Tuesday, December 8th 2015
U.S. lawmakers and ag industry stakeholders were quick to respond today after the World Trade Organization authorized $1.01 billion in retaliation for damages resulting from the U.S. country-of-origin labeling law, and Canada pledged to quickly impose tariffs on U.S. exports. The decision set annual retaliatory authorization at $781 million from Canada and $227 million from Mexico. The ruling cannot be appealed, and retaliatory tariffs on U.S. exported products could be in place as early as late next week. This ruling is the final step of a trade dispute several years in the making over the U.S. COOL law mandating disclosure of born, raised, and slaughtered information on meat labels. That law was challenged by Canada and Mexico, who ultimately persuaded the WTO that the legislation accorded unfavorable treatment to Canadian and Mexican livestock because, among other things, it required segregation of live animals. Canada has issued a draft list of U.S. exports that may face retaliatory tariffs. Items range from, but are not limited to, live animals and meat products to chocolate, pasta, and wine. Canadian officials under the previous administration indicated the products facing tariffs would change to target different members of Congress, and the new administration elected in October has indicated they would “follow through with an aggressive response” to the dispute. The authorized retaliatory amount is more than 10 times what the U.S. Trade Representative’s Office had proposed as an appropriate level, about $90 million. Tim Reif, the USTR’s general counsel, said retaliation will not only harm the U.S., but Canada and Mexico as well. Under WTO rules, the countries imposing retaliatory tariffs – in this case, Canada and Mexico – must wait at least 10 business days after the authorized retaliatory amounts are released before taking action. With that in mind, the earliest retaliation could be imposed is Dec. 18, the same day Congress is currently scheduled to adjourn for 2015. Any action on COOL, be it full repeal or directing USDA to redefine the problematic “product of the U.S.” wording implicated in this dispute, will likely be attached to a broader bill rather than in a standalone measure.
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