Media Release
Chamber of the Americas
2015-12-07
Canada and Mexico Benefit from World Trade
Organization Ruling against US
“COOL Ruled Discriminatory – Costs US Billions”
On Dec 7th
the World Trade Organization ruled that the US had discriminated against Canada
and Mexico in the way it handled labeling requirements for meat imports into
the country.
“We have always
known that the County Of Origin Labelling (COOL) provisions were in violation
of both the letter and the spirit of NAFTA,” said Maritza Meneses, Executive
Director for the Chamber of the Americans in Canada. “The World Trade
Organization ruling hopefully brings an end to this irritant between the three
NAFTA countries.”
Both Canada and
Mexico argued, successfully, that the American requirement that meat can only
be sold if it was labelled with the details of where the animal was born,
raised and slaughtered was, in fact a type of non-tariff trade barrier making
it difficult for Canadian and Mexican producers to sell their meat in the US.
The World Trade
Organization, after seven years of deliberation decided that Canada can apply
$780 million in retaliatory tariffs and Mexico $225 million.
“If the US Congress
does not repeal the COOL legislation these penalties can be applied again and again,”
explained Meneses.
According to
media reports both Canada and Mexico could start imposing the sanctions in
December – with the likely first target being milk that is purchased from the
US by both countries. Also effected would be US beef sales that will face
tariffs as high as 100%.
If the US
government does not respond tariffs could be applied to grains, fruits and
manufactured goods produced in the US.
“We honestly
hope the US government will react quickly to this ruling so that tariffs will
not be required. NAFTA works and these disputes get in the way of economic
prosperity for all of us,” concluded Meneses.
Chamber of the Americas:
The Chamber
of the Americas is a not-for-profit organization with a simple, profoundly
important goal: To help you make the most of your business opportunity in the
Americas. The Chamber’s mission is to facilitate commerce and understanding
between the businesses and governments of the Western Hemisphere. We connect
industries, businesses, and investors with each other, and with the government
sector, and disseminate the information, education and cultural knowledge vital
to the advancement of our collective goals.
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Contact
Info:
Maritza
Meneses, Executive Director
Chamber of
the Americas – Canada
403-710-9683
