Canada has asked the World Trade Organization to take another look at the United States' rules for labelling meat with its country of origin, seeking to defend its livestock farmers who have lost sales to US packers.
Canada is requesting that the WTO form a compliance panel to review US country of origin labeling rules, known as COOL, Canadian Agriculture Minister Gerry Ritz and International Trade Minister Ed Fast said. The move signals a new round in a dispute that could become a North American trade war.
Canadian cattle and hog producers say the rules, dating back to 2009, have led to lower US imports of Canadian livestock because they created additional cost for US packers.
Supporters say the labels offer consumers more information about where their food comes from.
Canada will not take retaliatory measures, which would involve tariffs on US products including meat, cherries, rice and potatoes, until the WTO authorises such action, the ministers said. Canada has previously said such a process could take 18 to 24 months.
The WTO ruled last year that the US labelling rules were not in compliance with WTO obligations and ordered changes by 23 May. The United States changed its labelling program, but Canada and Mexico have said the changes made the situation worse.
The US Department of Agriculture declined to comment on Canada's move, but defended COOL. The revisions include no longer allowing co-mingling of most muscle cuts from livestock in different countries within the same package. Meat and livestock groups from the United States and Canada launched a US court action last month aimed at striking down the stricter rules.
Source: Agriculture and Agri-Food Canada