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R-CALF USA Sets Trade Complaint Benchmark

Both Canada and Mexico have challenged the U.S. Country of Origin Labeling law to the World Trade Organization. R-CALF USA has sent letters to Agriculture Secretary Tom Vilsack and U.S. Trade Representative Ron Kirk stating that Canada and Mexico must prove more than $1.3 billion in damages – explaining that they must demonstrate that COOL has reduced the value of their combined exports of live cattle and beef to the U.S. by more than that figure.

R-CALF USA's letter contends that economic harm must be measured from a balanced trade relationship and explains that the reason Canada and Mexico cannot begin to measure an economic harm is because these combined countries continue to enjoy the unmitigated, windfall spoils emanating from an imbalanced trade relationship with the United States, to the tune of $1.3 billion annually.

"U.S. cattle producers are now suffering the severe consequences of a long-term trade imbalance in which we import each year from Canada and Mexico more than $1 billion more than we export to those countries," said R-CALF USA CEO Bill Bullard. "To make matters worse, our global trade deficit is even greater, amounting to $1.6 billion in 2008."