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Canada says it’s not bluffing

Canada’s agriculture minister is warning the U.S. that time is running short to avoid trade tariffs over its country of origin labeling (COOL) law.

Gerry Ritz says if Washington doesn’t change COOL to comply with WTO rulings in the coming months, Canada will apply to impose retaliatory tariffs on a long list of U.S. goods including beef and pork. Ritz says that action could come as early as this summer.

During a visit to Nebraska in early December, Canadian Cattlemen’s Association president Dave Solverson told Brownfield that COOL is hurting Canadian producers.

“We’ve had it quantified to about a hundred dollars a head that it’s taken off our market,” says Solverson. “The cost is not just on exported cattle, but it kind of puts a bigger basis between Nebraska and Alberta on all the cattle we have at home.”

Solverson says his group supports the Canadian government’s tariff threats.

“It (COOL) does not add any value—the consumers are not asking for it—and it’s just a big expense to the industry on both sides of the border,” he says. “So we need to get it fixed.”

A provision in the recently-passed budget bill requires U.S. Ag Secretary Tom Vilsack to change the COOL rule to comply with the WTO by May 1st.  But Vilsack says he needs direction from Congress in order to do that.  It’s uncertain whether Congress will take action before the WTO issues its final ruling, which is expected in late spring or early summer.

AUDIO: Dave Solverson