Trade Retaliation Clock Is Ticking?

U.S. on the Brink of Trade War with Canada and MexicoTrade War with Canada and Mexico? On June 17, the WTO will hold a meeting to hear formal requests from Mexico and Canada to retaliate against the United States because the U.S. Country of Origin Labeling (COOL) law does not comply with international trade rules. Retaliation means costly Mexican and Canadian tariffs imposed on many U.S. products that are significant to the U.S. economy.

Under WTO rules, retaliation could happen as soon as this summer. Those nations are seeking more than $3 billion annually in retaliation which, if implemented, would have disastrous consequences for U.S. jobs and exports [video].
Mexico and Canada have stated that the only development that will stop them from pursuing retaliation is repeal by the U.S. Congress of the COOL provisions for beef, pork and poultry. The U.S. House of Representatives voted overwhelmingly to repeal those COOL requirements. The issue now goes to the U.S. Senate. The “retaliation clock” is ticking.