Canada Releases 'Possible Retaliation' List over U.S. COOL Plan

June 7, 2013 09:41 AM
 

Via a special arrangement with Informa Economics, Inc.


NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


Host of products beyond beef and pork are to be potentially targeted

Canada may seek retaliatory measures against U.S. beef, pork, and potentially dozens of other products relative to the U.S. Country of Origin Labeling (COOL) plan USDA implemented via a final rule in late May, according to a joint statement from Canadian Ag Minister Gerry Ritz and International Trade Minister Ed Fast.

"Our government is extremely disappointed that the United States continues to uphold this protectionist policy that the WTO has ruled to be unfair and call on the U.S. to abide by this WTO ruling," the officials said.

A list of potential retaliation targets includes U.S. beef, pork, cheese, corn, steel pipes, wood furniture, apples, cherries, rice, pasta and dozens of other goods, according to reports.

Mexican officials have also signaled they will target a host of U.S. products and like Canada, products that go beyond just agriculture items. Mexico deployed a similar tact when they challenged the U.S. actions on the U.S.-Mexico trucking pilot program, with the action getting the U.S. to effectively lift its halt of the cross-border effort.

The U.S. National Farmers Union, a backer of the U.S. COOL plan, warned U.S. lawmakers earlier this week that efforts by Canada to target U.S. goods for retaliation were merely to get lawmakers to buckle and change the law. "Imminent retaliation is nothing more than a scare tactic designed to persuade Congress to change the COOL law, which has already been ruled WTO-compliant," Johnson said in the letter.

The following list itemizes the products imported from the United States that may be targeted in response to the failure by the United States to comply with the WTO ruling on certain Country of Origin Labelling (COOL) requirements. The list will be published in the Canada Gazette for the purposes of consulting with interested Canadians. Numbers indicate the tariff heading, sub-heading or item under the World Customs Organization's Harmonized Commodity Description and Coding System.

  • 01.02: live bovine animals;
  • 01.03: live swine;
  • 02.01: meat of bovine animals, fresh or chilled;
  • 02.02: meat of bovine animals, frozen;
  • 02.03: meat of swine, fresh, chilled or frozen;
  • 0207.13.10: cuts of offal, fresh or chilled, of spent fowl;
  • 0406.90: cheese, not including the following: fresh (unripened or uncured) cheese, whey cheese or curd; grated or powdered; processed cheese; blue-veined cheese or cheese containing veins produced by Penicillium roqueforti;
  • 0808.10: apples, fresh;
  • 0809.29: cherries, other than sour cherries (Prunus cerasus);
  • 0812.10: cherries, provisionally preserved (unsuitable in that state for immediate consumption);
  • 10.05: corn (maize);
  • 1006.30.00: semi-milled or wholly milled rice, whether or not polished or glazed;
  • 1602.32.11: prepared or preserved-prepared meals of spent fowl; prepared meals of specially defined mixtures;
  • 1602.32.92: prepared or preserved-specially defined mixtures, other than in cans or glass jars; spent fowl other than in cans or glass jars;
  • 1602.49: prepared or preserved swine cuts, other than ham and cuts thereof; other than shoulder and cuts thereof;
  • 1602.50: prepared or preserved meat of bovine animals;
  • 1702.20: maple sugar and maple syrup;
  • 1702.40.00: glucose and glucose syrup, containing in the dry state at least 20 percent but less than 50 percent by weight of fructose, excluding invert sugar;
  • 1702.60.00: certain fructose and fructose syrup, containing in the dry state more than 50 percent by weight of fructose, excluding invert sugar;
  • 1806.20: chocolate and other food preparations containing cocoa-preparations in blocks, slabs or bars weighing more than 2 kg or in liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg;
  • 1806.90: other chocolate and other food preparations containing cocoa-ice cream mix or ice milk mix; chocolates; chocolate coated nuts and other confectionery;
  • 19.02: pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagna, gnocchi, ravioli, cannelloni; couscous, whether or not prepared;
  • 19.04: prepared foods obtained by the swelling or roasting of cereals or cereal products (for example, corn flakes); cereals (other than maize [corn] in grain form or in the form of flakes or other worked grains (except flour, groats and meal), pre-cooked or otherwise prepared, not elsewhere specified or included;
  • 19.05: bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products;
  • 2004.10.00: certain potatoes, prepared or preserved otherwise than by vinegar or acetic acid, frozen;
  • 2009.11: frozen orange juice;
  • 2103.20: tomato ketchup and other tomato sauces;
  • 22.04: wine of fresh grapes, including fortified wines; certain grape must;
  • 2207.20: ethyl alcohol and other spirits, denatured, of any strength;
  • 2940.00.00: certain sugars, chemically pure, other than sucrose, lactose, maltose, glucose and fructose; sugar ethers, sugar acetals and sugar esters, and their salts;
  • 3504.00: peptones and their derivatives; other protein substances and their derivatives, not elsewhere specified or included; hide powder, whether or not chromed;
  • 71.13: articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal;
  • 7306.40.00: certain tubes, pipes and hollow profiles, welded, of circular cross-section, of stainless steel;
  • 7321.90: parts for non-electric heating appliances;
  • 7326.11.00: grinding balls and similar articles for mills, forged or stamped, but not further worked, of iron or steel;
  • 9401.30: swivel seats with variable height adjustment;
  • 9403.30.00: wooden furniture of a kind used in offices; and
  • 9404.29.00: mattresses of materials other than cellular rubber or plastics, whether or not covered.

 

COMMENTS: Canada was expected to target a host of goods in response to the U.S. COOL plan, including goods beyond just agricultural products. The apparent publication of the list makes clear they are going to make good on that warning that was issued after USDA published its final rule on COOL May 23. Mexico has also signaled they would target. The timeline for any retaliation depends on when the panel is assembled to examine the Canadian challenge of the U.S. plan, with a shorter timeline seen if the same panel that made the initial ruling against the U.S. law is able to take up the latest challenge.

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