|
Page
2 of 2
But
the committee's top Democrat, Collin Peterson,
said he would oppose efforts to repeal the
laws and said there were still steps to
follow at the WTO before rushing into a
decision.
Uncertainty
about the US reaction helped pressure Chicago
Mercantile Exchange live cattle and lean
hog futures lower. Allendale Inc chief strategist
Rich Nelson said any material impact depended
on the US response, but rescinding the legislation
would increase Canadian imports.
The
National Cattlemen's Beef Association, along
with business groups, and US pork producers
are pushing for legislative action. "Unless
Congress acts now, Canada and Mexico will
put tariffs on dozens of US products,"
said National Pork Producers Council president
Ron Prestage. "That's a death sentence
for US jobs and exports."
"Today's
WTO ruling effectively orders the US government
to stop providing consumers basic information
about where their food comes from,"
said Public Citizen's Global Trade Watch
director Lori Wallach, adding that it showed
the danger of free trade deals' undermining
consumer safeguards.
Mexicans
and Canadians find this disingenuous, as
these are not safeguards for health and
safety. First of all, no one is stopping
suppliers from "providing consumers
basic information about where their food
comes from" as Ms Wallach alleges.
There is simply no compulsion to do so.
Also disingenuous are objections over safeguards.
All the safeguards - and there are
many - are provided by the US Department
of Agriculture and other state agencies.
COOL is, as stated by the WTO, merely meant
to be an impediment to trade by other means.
Not
knowing which way Congress will jump US
Trade Representative chief counsel Tim Reif
said his office was considering all options
and would continue to consult with members
of Congress and the public.
Now
the US could face more than $3 billion in
retaliatory trade measures after the WTO
said the rules discriminated against Mexico
and Canada. Its decision was final.
"Canada
will not blink," said Canadian Agricultural
Minister Gerry Ritz, adding that he will
likely begin implementing the retaliatory
tariffs by late summer.
"Canada
has been clear and consistent in our intention
to retaliate should the US continue to ignore
its international trade obligations,"
he said.
The
amount sought by Canada represents the largest
penalty the country has yet contemplated
in a trade dispute, said Lawrence Herman,
a former Canadian trade official and Toronto-based
trade lawyer.
Another
Toronto trade lawyer, John Boscariol, said
the anti-US measures will hurt Canadian
businesses too.
Relations
between Ottawa and Washington have been
testy of late, highlighted by tensions over
the Obama administration's long-delayed
decision on the proposed Keystone XL pipeline.
Canada
and Mexico, however, have long contended
that the requirement put their cows and
pigs at a disadvantage, largely because
US meatpackers wouldn't want to go through
the hassle and expense of tracking information
on imported animals.
Perhaps
the COOL rule will be voted down and that
will be end of the matter. But intransigent
COOL rulers, who wish to preserve a near
monopoly over the American domestic market,
and have the political clout to hold politicians
feet to the fire until they vote the right
way.
This
may well spark a trade war that will spread
to frozen orange juice and steal pipes and
affect sectors that have little or nothing
to do with meat labelling. It's part of
the high price of democracy.
Page 1 2
|
