The U.S. decision to appeal an Oct.
The U.S. decision to appeal an Oct. 20 World Trade Organization (WTO) compliance panel ruling that called the country's Country of Origin Labeling program (COOL) discriminatory against Canadian cattle producers isn't a positive development for West Central Alberta ranchers, say officials.
"It's bad news that they've decided to appeal that ruling, but it's not surprising," said Grant Lastiwka, livestock and forage business specialist with Alberta Agricultural and Rural Development in Olds. "I think most people in the industry knew they would again appeal, although it's been twice ruling in Canada's favour of removal."
The Office of U.S. Trade Representatives launched the appeal of the October WTO ruling on Nov. 28.
Alberta cattle producers, like their fellow producers across Canada, are hurting because of the COOL regulations, he said.
"There is the thought that the industry is limited in the ability to access the U.S. market and the slaughterhouses in the U.S. because of COOL and its limitation on which types of cattle they can harvest," he said.
"The plants across the U.S. have two choices of the kind of cattle they can harvest and only two plants in the U.S. chose to also make one of their choices Canadian cattle. The others chose U.S. cattle and U.S.-fed Canadian cattle. It's not like every plant is open to them."
The Canadian Cattlemen's Association (CCA) has been leading the fight to get the U.S. to scrap the COOL program. It says the program has cost Canadian beef and pork producers more than $1 billion since it came into effect in 2008.
"The compliance panel report made it crystal clear that it is the U.S. COOL legislation that is causing discrimination against imports of live cattle and hogs in the U.S. marketplace," said CCA president Dave Solverson.
"This is a stall tactic by the U.S. for sure, but one that can only end with the U.S. making an appropriate resolution to COOL that is acceptable to Canada and Mexico in order to avoid retaliation."
Association officials say Canada will be in a position to request WTO authority to retaliate "once a decision on this appeal is received, confirming the October 20 compliance panel ruling."
The association will "continue to work with the Government of Canada on the COOL file until it is fully resolved, including preparing to impose tariffs on U.S. exports selected from the list of targeted commodities, including beef."
The CCA represents more than 68,000 Canadian beef producers and feedlots.
Following the announcement that the U.S. would appeal the WTO ruling against COOL, federal agriculture minister Gerry Ritz said, "With this delay, the United States is yet again preventing both of our countries from enjoying the benefits of freer and more open trade and is hurting farmers, ranchers and workers in the United States and Canada.
"We are confident that the WTO appellate body in the compliance process will uphold the principal finding of the report: that the amended U.S. COOL measure discriminates against Canadian livestock."
Grant Lastiwka says a resolution of the dispute would certainly be preferable to retaliation by Canada.
"No, that wouldn't be good. Any time you start a fight, it's never good," said Lastiwka.
Canada is right to continue to challenge COOL, he said.
"It's worth the fight because it's right," he said. "The fact is that twice it's been said that it's right and that it should not be maintained and it is discrimination. Do you back down and accept it or do you continue to push for what is right?"
Lastiwka is a regular advisor to the Mountain View County Agricultural Services Board.
"It's bad news that they've decided to appeal that ruling, but it's not surprising."Grant Lastiwka
