The World Trade Organization (WTO) finalized its May 2015 ruling, which found the U.S. mandatory Country of Origin Labeling (COOL) rule for muscle cuts of pork and beef is in violation of U.S. trade obligations. As a result of this finding, Mexico and Canada have requested authorization to impose retaliatory tariffs of $3.2 billion.

A WTO arbitration panel is expected to release a report on December 7 authorizing Canada and Mexico to retaliate by imposing new tariffs on certain U.S. exports into their countries, which includes dairy. This could threaten billions of dollars’ worth of U.S. trade.

Mexico and Canada are the first and third export markets for U.S. dairy products, respectively, and are already moving to impose retaliatory tariffs against U.S. export products. These could go into effect before the end of the year. IDFA members are being urged to contact Senators and encourage them to pass corrective legislation as soon as possible in order to stop retaliatory duties from being imposed against U.S. dairy products.

For more information on COOL, contact Beth Hughes, director of international affairs, at (202) 220-3527 or bhughes@idfa.org. 

For assistance reaching out to Senators, contact Ashley Burch, director of political programs, at (202) 220-3534 or aburch@idfa.org.