Market News & Headlines >> U.S. Faces Over $1 Billion in COOL Retaliation

A World Trade Organization Arbitration panel on Monday gave Canada and Mexico the right to levy a combined $1.09 billion in tariffs against U.S. goods in retaliation for the U.S. country-of-origin labeling law (COOL). 

The WTO panel, meeting in Geneva, Switzerland ruled that Canada could impose about $781 million in retaliatory tariffs against the U.S. while Mexico could impose $227.8 million in similar tariffs against the U.S. Monday’s announcement is the final step in a WTO dispute process that has been ongoing for more than seven years. The WTO previously ruled that the COOL law discriminates against Canadian and Mexican cattle and hogs. 

Canada's new ministers for trade and agriculture warned they would “quickly” take steps to retaliate if the U.S. Senate does not take immediate action to repeal the COOL law for beef and pork. 

National Cattleman’s Beef Association President Philip Ellis also called on the Senate to act immediately. “If the Senate does not act, U.S. beef exports will face a 100 percent tariff in these countries, severely diminishing about $2 billion of beef exports annually,” Ellis said in a press release. Mexico and Canada are the No. 1 and No. 3 importers of U.S. beef by volume so far in 2015.