Canada accuses U.S. of dodging COOL
The United States is trying futilely to avoid retaliatory tariffs because of its trade-distorting country-of-origin labels (COOL), Canada said, renewing its demand for an end to COOL. “The only way for the United States to avoid billions in retaliation by late summer is to ensure legislation repealing COOL passes the Senate and is signed by the president,” said Canada’s agriculture and trade ministers, following a WTO meeting to discuss penalties against the trade-distorting rules. “Canada is disappointed that the United States is attempting to prolong the WTO process by requesting arbitration.”
In a WTO session in Geneva, Canada asked permission to impose $3 billion in retaliatory tariffs on U.S, manufactured and agricultural goods, said AFP. WTO issued a final ruling on May 18 that COOL discouraged U.S. imports of meat and livestock from Canada and Mexico. “The United States said it strongly disagreed with Canada’s specific proposal for the suspension of concessions,” said AFP, which quoted a U.S. delegate to WTO as saying, “Although these matters will be considered in detail during the arbitration, the United States would emphasize that the level of Canada’s request is quite excessive.”
Senate Agriculture chairman Pat Roberts called a committee hearing for June 25 to discuss COOL, trade retaliation and “what’s at stake for America’s farmers, ranchers, businesses and consumers.” The House passed a bill to repeal COOL for beef, pork and chicken on June 10 on a landslide vote of 300-131. The WTO ruling applied only to beef and pork but the poultry industry asked to be included in the repeal bill. A large part of the U.S. diet is covered by COOL, including fruits, vegetables and seafood. Over the years, COOL has been more popular in the Senate than in the House.