The World Trade Organization Dec. 7 said Canada and Mexico could impose $1.01 billion per year in retaliatory tariffs over the U.S. country-of-origin labeling program for beef and pork if it stays in place, and Senate Agriculture Committee Chairman Pat Roberts, R-Kan., called for repeal of the program.
Vilsack told USDA Radio the World Trade Organization’s decision to allow only $1.01 billion in retaliatory tariffs showed that Mexico and Canada “were overstating the damages” when they asked the WTO for authorization to impose $3 billion in damages.
The secretary noted that $1 billion in tariffs is still a lot, especially since U.S. agricultural exports are declining. Vilsack said he would work to resolve the matter, but that he hopes Congress will not throw out the entire program for beef and pork.
“They can focus on the provisions of COOL that actually created the retaliation without necessarily eliminating all aspects of COOL, some of which people actually like and are benefitting producers without violating WTO rules and regulations,” Vilsack said.
A spokesperson added that USDA would work with the Office of the U.S. Trade Representative and Congress “to help move the process along as quickly as possible.”
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Stabenow has been a staunch supporter of labeling, but Canada is likely to target Michigan products.
“I have always said I would not allow retaliation to take effect,” she said Monday. “It is critical that we work together to find a solution before the end of the year.”
Hoeven noted that he and Stabenow “have worked hard to find a compromise approach to country-of-origin labeling capable of passing the Senate so that our producers don’t face retaliation.”
He added, “I will continue efforts to avoid retaliation as Congress completes its work before the end of the year.”
Sen. Heidi Heitkamp, D-N.D., said Monday she would keep pushing for the voluntary beef label.
“When families across the country sit down at the dinner table each night, they want to know where the meat they’re eating comes from,” said Heitkamp. “WTO’s ruling today signals that we need a compromise - one that maintains country-of-origin labels, while still complying with trade obligations.”
“Labeling is critical for U.S. consumers and ranchers. That’s why I’ll keep pushing for a voluntary solution, like the bipartisan compromise bill I helped introduce in July, to allow labeling and protect the integrity of ‘product of the U.S.’ labels.”
Senate Agriculture Committee Chairman Pat Roberts, R-Kan., called on the Senate to pass the repeal, as the House has done.
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President Bob Stallman called for repeal of the labeling program for beef, pork and chicken, as a House bill has done.
“AFBF supports country-of-origin labeling that meets WTO requirements, and we support the remaining COOL programs, but the risk of retaliation by Canada and Mexico is too great. U.S. farmers and ranchers could suffer a serious blow if Congress does not act quickly,” Stallman said in a news release.
“I am keenly aware that chicken and fowl could be at the top of the list for retaliation by Canada and Mexico, and that this labeling law continues to leave the door open for retaliatory action by other countries, too,” said National Chicken Council President Mike Brown. “NCC supports legislative action that will bring U.S. laws and regulations pertaining to meat and poultry into full compliance with our international trade obligations. NCC urges Congress to repeal the labeling provision for chicken, beef and pork now.”
U.S. Dairy Export Council President Tom Suber said, "Retaliatory tariffs would back up exports further onto the U.S. market during a time of overly abundant milk supplies. “U.S. dairy producers and processors cannot lose this chance to avoid considerable damage to the export markets they have invested so heavily in developing in recent years.”
