Ottawa Holding Off on Trade Action Versus U.S.

(Paul Vieira — Financial Post)

Stockwell Day, the International Trade Minister, said on Thursday Canada is “reserving judgment” on potential trade action against Washington over a meat-labelling law that domestic livestock producers argue is a “significant” non-tariff barrier costing them hundreds of millions of dollars.

As he played down potential trade action with Washington, Mr. Day announced he asked the World Trade Organization to begin consultations to address South Korea’s nearly six-year ban on imported Canadian beef.

Canadian livestock producers say their sector is in crisis as the result of a U.S. law that requires labels on meat and other foods sold at U. S. supermarkets to indicate from which countries the food originates. Sales of live hogs to Americans are down over 40% from a year ago, and the cattle producers claim the law has cost its sector $400-million, as U.S. meat packers decline to take Canadian livestock due to the added red tape the labelling law entails. Read more here.