GENEVA, SWITZERLAND – An arbitration panel of the World Trade Organization (WTO) recently completed hearings regarding how much Canada and Mexico will be able to claim in retaliatory tariffs for the U.S. country-of-origin-labeling rules (COOL). A decision is scheduled for late November.
Canada is seeking more than $3 billion in tariffs against the U.S. for failing to repeal U.S. COOL regulations. The U.S. Trade Representative said Canada’s claims are overvalued, and asked the WTO to determine how much Canada can claim through retaliatory tariffs. Mexico is seeking WTO authorization for more than $653 million.
The WTO delivered its fourth and final ruling against COOL in May. In June, the U.S. House of Representatives voted 300 to 131 in favor of repealing COOL. The Senate developed a bill that repeals mandatory COOL and replaces it with a voluntary system lawmakers said is similar to the voluntary scheme used in Canada.