Vic Toews, Member of Parliament for Provencher, welcomed the World Trade Organization’s (WTO) ruling that the U.S. Country of Origin Labelling (COOL) measure is inconsistent with the country’s WTO trade obligations.
“Today’s decision is a clear victory for Canada’s livestock industry,” said Toews. “This is good news for Canadian workers and families and serves as further proof that our Government’s commitment to defending Canadian interests in every sector of our economy is achieving results.” said Toews.
The U.S. COOL measure has forced the livestock industry in Canada and other countries that trade with the U.S. to go through a lengthy labelling and tracking system with an unnecessary paper burden and additional red tape. It has led to disintegration of the North American supply chain, created unpredictability in the market and imposed additional costs on producers on both sides of the border. Thirteen WTO country members have joined as third parties in the dispute. The U.S. will now be required to bring its measures into conformity with its WTO obligations. However, if the WTO decision is appealed, it could delay the outcome.
Canada and the United States enjoy the largest bilateral trading relationship in the world with two-way trade in goods and services reaching $649 billion last year. Agriculture trade accounted for $35 billion of this total. Reducing obstacles to trade has contributed to mutually beneficial supply chains, making both countries more competitive domestically and internationally. All told, the jobs of over eight million Americans depend on trade with Canada, just as over two million Canadian jobs depend on trade with the U.S.