Canada today submitted a request at the World Trade Organization for retaliatory trade measures against the United States for non-compliance after winning a meat labelling dispute.
At a special WTO meeting held to iron out trade disputes, Canada evaluated the suspension of its tariffs and related obligations on US goods at three billion Canadian dollars (USD 2.5 billion) annually.
This was "in response to the US's continued non-compliance with its WTO obligations" in the COOL (Country of origin labelling requirement) dispute," a source close to the dispute said.
"At the meeting today, Canada said it was deeply disappointed that the US continues to maintain a measure that is inconsistent with its WTO obligations," the source said.
The WTO had upheld a complaint by Canada and Mexico that US laws in place since 2009 requiring retailers to label meat with the country where the animal was born, raised and slaughtered discriminated against imported livestock.
Canada, which said that the measure adversely affects its pig and cattle breeders, successfully challenged the regulation before the WTO.
America's largest trade partner had previously fought the so-called COOL rule at the WTO saying it discriminated against Canadian products, and won.
But Washington tweaked the regulation to circumvent the ruling. However both Canada and Mexico won on appeal.
The United States objected to the amount proposed by Canada, and the matter has been referred to arbitration.
The United States, Canada and Mexico agreed a year ago to enable the arbitrator to circulate its decision within 60 days.
Canada said that the amount of sanctions requested was "the equivalent of the level of nullification and impairment of benefits suffered by Canada, on an annual basis."
It also said that it would provide in due course a list of the US goods that will be affected by its suspension of concessions and the level of tariffs to be applied to them.
The United States said it strongly disagreed with Canada's specific proposal for the suspension of concessions.
"Although these matters will be considered in detail during the arbitration, the US would emphasize that the level of Canada's request is quite excessive," a US delegate said.
