The World Trade Organization this week has upheld several rulings that American meat-labelling requirements violate international laws.
The U.S. labelling law requires special labels on meat products identifying whether beef and pork were bred, raised and slaughtered in the U.S.
Canada and Mexico have long argued that the U.S. law has nothing to do with food safety but more to do with protecting the U.S. meat industry by keeping foreign products out of grocery stores.
“Although not unexpected, we are very pleased with the WTO’s ruling,” said Manitoba Beef Producers President Heinz Reimer.
“We have long maintained that COOL (Country Of Origin Labelling) is a discriminatory practice and the WTO’s decision makes this clear once and for all. If the U.S. were to repeal COOL, there would be immediate positive effects for producers in Manitoba and across Canada.”
The U.S. still has to pass legislation to remove its labelling law.
The Canadian government said if that doesn't happen, it's ready to impose retaliatory tariffs on American exports to Canada such as beef, pork, wine, cherries and mattresses.
Agriculture Minister Gerry Ritz said the government will now ask the WTO to approve the retaliatory measures against the U.S., which could take a few months.
It may not be necessary.
University of Manitoba Agricultural Economics professor Ryan Cardwell said he'd be surprised if it went that far.
Cardwell said Canada would have to provide value of injury to the WTO. The retaliatory taxes would then have to be authorized and then Canada would have to choose specific U.S. products to target.
But, if it does happen Cardwell said prices on those American products would rise in Canada.
"Anytime Canada imposes an import tax or an import tariff it increases the price for consumers in Canada. So consumers lose," said Cardwell.
Michael Conoway, the Republican chair of the House agriculture committee, said he plans to introduce a bill this week to repeal the meat-labelling laws.
Manitoba Pork General Manager Andrew Dickson said he expects the U.S. will cooperate.
He said if the retaliatory tariffs are imposed Canadian pork processors would be ready to sell to domestic markets to make up for any shortage that could be caused by a possible trade war.
Ninety per cent of Manitoba pork is exported to other markets.
Dickson said it's unclear what effect the tariffs would have on meat prices at the store.
Ed Cantor at Cantor's Grocery in Winnipeg said 99 per cent percent of the meat they sell comes from Canada.
He hasn't heard of any possible price hikes from his suppliers due to the WTO ruling.
A group of U.S. lawmakers hopes to move swiftly to avoid a trade war with Canada.
Members of a congressional committee have introduced a Bill that would repeal the meat-labelling standards.
- with files from The Canadian Press
