Farms.com Home   News

Canada Threatens Tariffs Over Not-So-COOL Proposal

Proposed amendments to the Country-of-Origin Labelling (COOL) law in the U.S. aren't sitting so coolly with Canadians.
 
Last week two U.S. senators proposed a bill that would ammend COOL legislation, which currently requires retailers to label where fresh-meat products, such as beef and pork, were raised, slaughtered, and processed. The new proposition would replace that with voluntary labelling, so American producers would have the option to put "product of U.S.A." labels on their meat. They say this is similar to what Canadians already do.
 
The Canadian government disagrees.
 
"[This] proposal in no way reflects Canada's voluntary labelling regime - any suggestion of this is blatantly false," said federal Agriculture Minister Gerry Ritz in statement Thursday. "Should the U.S. move forward with their short-sighted proposal, Canada will have no choice but to impose billions of dollars of retaliatory tariffs on U.S. exports."
 
He went on to say this voluntary system would continue "the segregation of and discrimination against Canadian cattle and hogs," which already exists under the current law.
 
In May, the World Trade Organization ruled that American COOL legislation violated international trade agreements. Canada then requested approval to impose over $3 billion in retaliatory tariffs.
 
The Canadian Cattlemen's Association (CCA) also wants the U.S. to repeal COOL. They say the proposed voluntary system wouldn't fix segregation problems. However, they are also concerned about the possibility of tariffs.
 
"If there is 100 per cent tariff on pork or beef, it would literally stop north/south trade for a while," says Dave Solverson, president of the CCA. "[We] understand that there will be some form of labeling when this all done, but we want to make sure that it is truly voluntary and that there is no chance for segregation. The whole matter of the WTO case was on the fact that the animals were segregated before processing."
 
Source : PortageOnline

Trending Video

Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?


Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.