April 15, 2013

Canada may act against more US imports, other than beef and pork, as part of the country's response toward US country- of-origin meat-labeling rules, said the country's Agriculture Minister Gerry Ritz said on Thursday.

The US meat-labeling rules have led to a sharp reduction in US imports of Canadian and Mexican livestock. The World Trade Organisation (WTO) has ordered the US to make changes to the rules by May 23.

In March 2013, the US has proposed stricter rules for labeling meat. The proposal quickly drew criticism from Canada.

Canada is now considering retaliatory measures against US exports worth up to US$990 million.

"I see retaliatory measures going beyond simply beef and pork," Ritz said.

He said Mexico seemed willing to join Canada in taking retaliatory measures, but that it should speak for itself.

Going through WTO channels to impose retaliatory measures against the US could take up to two years, Ritz said.

In Washington, US pork producers expressed concern about the potential retaliation and urged the labeling rules be revamped to better conform with WTO rules.

"Retaliatory tariffs on pork by Canada or Mexico would be financially devastating to US pork producers," Randy Spronk, president of the National Pork Producers Council, said.