The United States has lost a key round at the World Trade Organization (WTO) in a trade dispute with Canada and Mexico over meat labeling, according to a Wall Street Journal report. Canada and Mexico opposed a new U.S. rule that requires more information on labels about the origins of beef, pork and other meats, which went into effect in November.
They United States took their case to the WTO, saying the rule hurts their competitiveness. The WTO panel that heard oral arguments in the dispute over the country-of-origin labeling rule earlier this year has decided in favor of Canada and Mexico, according to sources familiar with the panel’s confidential report. The report, which the three governments have received, is expected to be made public in late September or early October, these sources said.
According to WTO rules, the United States will have 60 days to appeal from the time the report is made public. Ottawa has to wait until the appeal process is exhausted to get the WTO’s approval to retaliate, which is not expected until late next year. The developments could push the three partners of the North American Free Trade Agreement closer to a potential trade war.
