(Adds Mexico response)
By Tom Miles and Rod Nickel
GENEVA/WINNIPEG, Manitoba, Dec 7 (Reuters) - Canada and
Mexico prepared to target $1 billion worth of U.S. exports after
the World Trade Organization (WTO) authorized the countries on
Monday to retaliate against the United States' meat-labeling
rules.
A WTO panel set the annual retaliation level at C$1.055
billion ($780 million) for Canada and $228 million for Mexico,
considerably less than the C$3.068 billion and $713 million the
two countries had sought.
The dispute stems from a 2009 U.S. requirement that retail
outlets label food with information about its origin.
Canada and Mexico have argued that country of origin
labeling, known as COOL, has led to fewer of their cattle and
pigs being slaughtered in the United States.
Canada will retaliate if the U.S. Senate does not take
"immediate action" to repeal COOL for beef and pork, Canadian
International Trade Minister Chrystia Freeland and Agriculture
Minister Lawrence MacAulay said in a statement.
The U.S. House of Representatives passed a bill in June to
repeal COOL, but the Senate has not yet voted on it.
Mexico's economy ministry said it has started internal
procedures to strip benefits from some imports of U.S. apples,
dairy, alcoholic drinks and personal hygiene products.
"We are disappointed with this decision and its potential
impact on trade among vital North American partners," said Tim
Reif, general counsel for the Office of the U.S. Trade
Representative. "We will continue to consult with members of
Congress as they consider options to replace the current COOL
law and additional next steps."
The amount is big enough to get U.S. legislators' attention,
said John Masswohl, director of government and international
relations for the Canadian Cattlemen's Association.
"What we want is for the U.S. Senate to be motivated to
repeal COOL," he said.
COOL has been costly for the U.S. farm sector, said the
North American Meat Institute, which represents meatpackers.
Chicago live cattle contracts LCc1 fell by their daily price
limit following the WTO's announcement.
But R-CALF, a group of U.S. cattle producers, said the
"absurd" decision overstated the damage.
It was unclear which products Canada might target.
The previous Conservative government in Canada had drafted a
lengthy list of possible targets, ranging from beef and pork to
wines and cherries.
Only in six of the previous 18 cases in which the WTO has
authorized sanctions did countries actually apply them, since
most cases were settled first.
The latest ruling cannot be appealed.
($1 = 1.3508 Canadian dollars)