Canada threatens U.S. with tariffs over meat-labelling rules

Ottawa is warning it may impose tariffs on everything from orange juice to bread if the United States doesn't change a meat-labelling policy that Canadian beef and pork industries say is costing them more than $1 billion a year.

The federal government has released a long list of agriculture and other products that could be affected by Canada's retaliation in an ongoing dispute over U.S. country-of-origin meat-labelling rules.

Canada's list includes U.S. cattle, pigs, beef, pork, cheese, pasta some fruits and vegetables, chocolate and maple syrup. There are also some non-food items, such as office furniture, mattresses and some types of jewelry.

For the full list, see the government's press release.

Tariffs could raise Canadian prices

"Free and unfettered trade is a two-way street," Agriculture Minister Gerry Ritz said at a news conference in Vancouver Friday. "These retaliatory measures, should we be forced to bring them into effect, will affect our producers and consumers on both sides of the border.

"It is by no means our preferred course of action, but we will continue to stand with Canadian hog and cattle producers against mandatory country-of-origin labelling."

Ritz said if Canada follows through with the retaliatory measures, it would cost the U.S. money and jobs.

He acknowledged such tariffs could also mean that Canadian consumers would have to pay more for the products.

"There is a possibility of that," he said. "We are hoping that this will bring enough pressure to the Americans to make the change before this ever has to be implemented."

Ritz called on the U.S. to respect a World Trade Organization ruling on meat labelling, which found the system discriminates against foreign livestock.

He says Canada must get authorization from the WTO before it can retaliate against the U.S. and that could take between 18 to 24 months.

Labelling rules burdensome, exporters say

The U.S. labelling policy, first implemented in 2008, requires labels to carry information not just on where meat originated but also where the animal was raised, slaughtered and processed.

Canada objects to the labelling system on the grounds that it is burdensome, increases costs and makes it more difficult for U.S. companies to buy Canadian products. It says that, within a year of being introduced, the rules resulted in a 50 per cent drop in Canadian cattle shipments and a 58 per cent drop in the export of slaughter hogs.

The U.S. recently announced it wants to make the rules even more onerous, requiring more detail on meat labels on the origins of beef, pork and chicken sold in American grocery stores.

Labels would include such information as "born, raised and slaughtered in the United States" for American meat. Cuts of meat from other countries could carry labels such as "born in Canada, raised and slaughtered in the United States."

Original Article
Source: CBC
Author: CP