WASHINGTON, Nov. 4, 2015 - Retaliatory
tariffs from the country-of-origin labeling dispute could be here before
Christmas, according to the chairman of the Senate Agriculture Committee, but
timing of legislative action to address the issue might have to wait.
“All members of the Ag Committee have
put in time to develop workable solutions. Ultimately, the WTO arbitration
panel could announce the retaliatory tariffs amount that Canada and Mexico can
implement on U.S. exports by Dec. 7,” Chairman Pat Roberts, R-Kan., said. “I’m
told by trade experts that as soon as Dec. 18, Canada and Mexico could
implement those tariffs.”
The actual size of the tariffs remains
unknown and there is a wide range of speculation. Canada and Mexico are seeking
combined retaliation in the neighborhood of $3 billion, but some COOL
proponents think the retaliation amount will be around $500 million. Those in
favor of full repeal contend that regardless of that actual amount,
retaliation will have real impacts on U.S. businesses and will damage the
country's relationship with Canada and Mexico.
Many agricultural organizations are in
favor of full repeal of COOL, which passed the House in June.
Concerns over the broad scope of retaliation have rattled those both inside and
outside of agriculture, but the sanctions would likely hit agricultural
products the hardest.
In a letter to Roberts and
ranking minority member Debbie Stabenow, D-Mich., National Association of State
Departments of Agriculture President Greg Ibach said COOL needs to be swiftly
repealed “to facilitate ongoing access for U.S. agricultural producers to two
of their most important export markets, without the threat of retaliatory
measures.”
In July, Stabenow worked with North
Dakota Republican John Hoeven to introduce a bill that would
make COOL voluntary, but Canada and Mexico have expressed opposition to the measure,
saying it continues the “born, raised, and slaughtered” labeling requiring
segregation of live animals, a major crux of the trade dispute.
During a recent Senate Agriculture
Committee hearing, National Farmers Union President Roger Johnson urged support
for the Hoeven-Stabenow amendment for voluntary COOL.
“The voluntary program will allow for
those who would like to use an origin label to continue to do so, while
preventing labels from being misused or misleading.”
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