OTTAWA – Canada is prepared to impose sanctions of up to C$1 billion ($980 million) a year against the United States unless it complies with a WTO order to redesign its meat labels, Agriculture Minister Gerry Ritz said on Tuesday.
The United States introduced country of origin labels for meat in 2009. Mexico and Canada successfully argued before the World Trade Organization that the labels were discriminatory and Washington has until May 23 this year to change them.
The Canadians and Mexicans want Washington to comply with the WTO ruling that it must amend its meat labeling rules. The labels right now identify where beef, pork, chicken and lamb sold in the United States come from.
The rules cut U.S. imports of Canadian pigs and cattle sharply because it raised costs for U.S. packers who must now segregate imported animals from U.S. livestock.
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