US moves WTO

Published November 29, 2014
— Reuters/File
— Reuters/File

GENEVA: The United States lodged an appeal on Friday to challenge a World Trade Organisation (WTO) ruling it said had failed to bring its meat labelling laws into line with global trade rules.

Canada and Mexico won a WTO ruling three years ago that said the US rules illegally discriminated against imported meat.

The United States lost a subsequent appeal and was told to bring its laws into line, but in October this year the WTO said it had not done so, paving the way for Canada and Mexico to demand the right to impose trade sanctions.

Canadian Agriculture Minister Gerry Ritz said Ottawa was deeply disappointed by the appeal and called on the United States to drop its “blatantly protectionist” labelling rules.

“We will take whatever steps may be necessary including retaliation to achieve a fair resolution,” he said in a statement.

Canada estimates the US rules, which require retailers to list the country of origin on meat, cost its farmers and processors $1 billion a year in lost sales and lower prices.

Ottawa already has published a hit list of potential US targets including wine, chocolate, ketchup and cereal.

Even if the latest US appeal fails to overturn October’s ruling, it will delay the threat of sanctions, which would only be imposed if the United States failed to bring its laws into line with the WTO rules within a reasonable period.

Published in Dawn, November 29th, 2014

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