Agriculture minister disappointed in COOL
REGINA — Saskatchewan Agriculture Minister Lyle Stewart says he is disappointed the U.S. hasn’t changed its controversial Country of Origin Labelling (COOL) rules.
The province supports proposed retaliatory measures that the federal government is considering if those are deemed necessary, Stewart said.
“We’re just very disappointed that the U.S. Country of Origin Labelling rules are not changed in the proposed agriculture bill down there that will likely be voted on this week,” Stewart told reporters at the Legislative Building in Regina on Tuesday.
“This is a restrictive trade measure. The cattle industry in this country has said for years that if the U.S. wants to label, that’s fine with us, but this is discriminatory, the way the rules segregate Canadian cattle and even cuts of meat, in U.S. packing plants. It’s discriminatory against Canadian cattle and hogs and is costing our industry a billion dollars a year.”
Stewart said negotiations around the farm bill offered the appropriate opportunity to address the concerns around COOL and the problems it has caused for Canadian producers.
The $1-billion figure he cited is based on estimates of what COOL has cost the Canadian cattle industry annually since 2008.
“We have a pretty decent hog industry and a large cattle industry, the second largest cattle exporters in the country, so a big chunk of that $1 billion would come out of the pockets of Saskatchewan producers,” he said.
The provincial government supports Ottawa going forward with retaliatory measures in response to COOL, although Stewart described such an approach as a last resort.
“It’s not good for anybody, but we do support the federal government in resorting to that, if this can’t be worked out. But that’s not the next step at this point. Hopefully that won’t be necessary, but if it comes to that, we will be in full support,” he said.
Stewart said the next step likely will be World Trade Organization hearings in Geneva next month, where Canada will make presentations.
A decision will take some time after that, and if Canada is successful, the U.S. is expected to appeal, Stewart said, adding it will likely take until the first half of 2015 before that process concludes.
Tariffs could mean higher prices in Canada for some goods, he admitted.
“But it’s about the only weapon, if everything else fails, if negotiations fail, if the WTO ruling fails to change the Americans’ mind on this, it’s about the only tool we have left,” Stewart said.
“We can’t be pushed around like this by any of our trading partners.”