U.S. meat labeling strikes back with tariffs on drinks
Canada is planning to impose tariffs on U.S. drink products to help compensate for the latter's country-of-origin labelling (COOL) requirements on beef and pork.
The U.S. position has been ruled as breaching global trading rules by the World Trade Organisation (WTO).
A shortlist of products drawn up by the Canadian government for these duties includes frozen orange juice, wine (including fortified wines), certain grape must and ethyl alcohol.
The duty levels,which will be combined with additional tariffs on shortlisted food and other products, will enable Canada to generate CAD1.05bn ($777m) annually – as approved by the WTO.
Canada may seek WTO approval for these new duties this month, but its government is "still working" on the rates, with no firm deadline, according to an official in Ottawa.
Mexico has also been given permission to raise revenue from retaliatory duties – up to $227.7m – on US exports over the COOL case. ■