By Bruce Cochrane
An agricultural economics professor with the University of Missouri is hopeful the U.S. Senate will move quickly to repeal Mandatory Country of Origin Labelling once it returns from its August recess.
In May the World Trade Organization rejected the final appeal of the United States of a series of rulings that found U.S. Mandatory Country of Origin Labelling discriminates against imported livestock, in violation of U.S. international trade obligations, opening the door for Canada and Mexico to seek authorization to impose retaliatory tariffs on U.S. imports.
Dr. Ron Plain, an agricultural economics professor with the University of Missouri, says Canada and Mexico are moving forward with plans to impose tariffs if the U.S. doesn't act in a timely manner.
Dr. Ron Plain-University of Missouri:
It looks like we're going to get the law changed.
The U.S. House of Representatives voted to repeal Country of Origin Labelling on the meats, for beef, pork, chicken and turkey.
The U.S. Senate has not yet acted.
They're on recess now, but hopefully when they return, they will move quickly to repeal Country of Origin Labelling.
Otherwise what ever products Canada and Mexico choose to levy the tariffs on, they will import a whole lot less of from the United States.
Apparently it's my understanding it's pretty well wide open.
Both your country and Mexico can choose what products to place the tariffs on and so, for Canadian consumers, it may mean a bit higher prices for those goods but, certainly for U.S. exports it could mean dramatically lower shipments from the U.S. to Canada so it could be terribly disrupting for U.S. businesses which is why I'm hoping that the U.S. Senate will move quickly to eliminate Country of Origin Labelling.
Retaliatory tariffs could come into effect as early as late summer, or early fall.
Source: Farmscape