Canada Set to Impose 100 Percent Surtax on U.S. Imports

May 22, 2015

On May 18, 2015, the World Trade Organization's Appellate Body upheld the finding of an October 14, 2014 compliance panel ruling that the U.S. revised country-of-origin labeling (COOL) rules for importations of meat from Canada and Mexico was inconsistent with Article 2.1 of the Agreement on Technical Barriers to Trade (TBT), which requires WTO members' regulations to treat imports in a manner that is "no less favorable than that accorded to like products of national origin and to like products originating in any other country."...

This Appellate Body's decision cannot be further appealed... Thereafter Canada will be free to proceed to request authorization from a WTO arbitrator to determine the level of nullification and impairment, or damage, caused by the COOL rules to Canadian exports of meat. After the arbitrator issues his decision, Canada will be free to request formal authorization from the DSB to retaliate. Once the DSB grants such authorization, Canada has indicated that it will impose a 100% surtax on the following U.S. imports to Canada.

  • Live bovine animals
  • Live swine
  • Meat of bovine animals, fresh or chilled
  • Meat of bovine animals, frozen
  • Meat of swine, fresh, chilled, or frozen
  • Cuts of offal, fresh or chilled of spent fowl...

This has been excerpted from 19 May 2015 article by Brenda Swick, Partner, McCarthy Tétrault.


Topic(s): 
Canadian Economy & Politics
Information Source: 
Canadian News Channel
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