December 9, 2015

WTO Allows Retaliatory Tariffs on US Imports to Mexico and Canada

The World Trade Organization (WTO) has upheld its previous decision to rule against the U.S. and the October 20, 2014 Panel Report, citing that U.S. Country of Origin Labeling (COOL) regulations that apply to imported meat discriminate against Canada and Mexico. This is the third time the WTO has rejected the modified U.S. regulations stating it discriminated against Canada and Mexico creating a technical barrier to trade. In declining the U.S.’s appeal, the WTO decision will now enable Canada and Mexico to apply retaliatory tariffs. The retaliatory tariffs (Canada $780 million and Mexico $228 million) could apply to a wide range of commodities, including vegetables, fruit and tree nuts unless the U.S. repeals COOL requirements for meat.

An official list of tariffed commodities has not been released as of yet. Stay tuned to Spotlight for an update to this story once the official list has been released.

For more information, contact Ken Gilliland at (949) 885-2267.