Trade ruling against U.S. should pay off for Island beef, pork producers
U.S. says it will remove country-of-origin labels, which should increase demand for Canadian products
A decision by the U.S. Congress to draft a bill to repeal mandatory country-of-origin labelling on beef and pork products is good news for Island farmers, the PEI Federation of Agriculture says.
The draft bill follows a ruling by the World Trade Organization that says if the U.S. doesn't drop the measure, Canada and Mexico can impose more than $1 billion in tariffs on a wide range of American products.
It should increase demand for Canadian beef and pork, and increase prices, said Robert Godfrey, the federation's executive director.
"They either repeal it or the Canadian government has been authorized to go ahead and put in retaliatory tariffs. So it's a win for Canadian farmers, it's a win for Island farmers and it's about time," he said.
The WTO ruling is clear and Canada won't back down until the repeal actually happens, said Cardigan M.P. and federal Agriculture minister Lawrence MacAulay.
"We went to the WTO four times and they have four times agreed with our appeal," MacAulay continued. "And they have set a repeal fund of about $1.1 billion dollars and that's good because Americans understand billions."
MacAulay said once the country-of-origin labeling is repealed, it should open up the market and help Island farmers get a good return for their product.