The Alberta Beef Producers (ABP) are calling on the Canadian Government for action against the United States in what the organization is calling a “failure to comply with the World Trade Organization (WTO).”
The move is in direct response to the issue of country of labeling, the policy – which was slated to be eliminated earlier this May – but was revamped to increase discrimination, according to the ABP.
“The rationale that this amendment complies with the ruling is completely unrealistic and will only increase costs leaving Canadian producers to carry the burden,” Doug Sawyer, chair of the Alberta Beef Producers said.
The issue of labeling has been at the forefront of the ABP periphery, as the organization has been vocal about the effects it has on Canadian beef producers.
The country of origin or COOL as it is referred to, identifies the country the beef was produced in and has, as critics such as the ABP have argued, caused a decrease in Canadian beef exports.
“This discrimination is costing Canadian cattle producers approximately $25 to $40 per head totaling around $640 million per year,” The ABP release stated.
The report goes on to say that, “These losses have been incurred since COOL was implemented in late 2008 and continue to this day.”
To make matters worse, the World Trade Organization ruled last summer that COOL was in violation of WTO rules because the requirement that meat produced in the US from imported livestock bear a different label from meat produced from US born livestock causes segregation, with additional handling cost inflicted disproportionally on imported livestock.
Wild Rose MP Blake Richards insists it’s a frustrating situation for Alberta farmers to be in and insists the Canadian government is taking the situation seriously.
“This is a battle we’ve been fighting for while,” he said. “Our government really believes that the country of origin labeling is an unfair trade practice. Obviously, we’re extremely disappointed.”
According to Richards, the government is planning retaliation action involving the WTO.
“(There are) a couple of things we are looking at,” Richards explained. “We are preparing to launch the first phase of the dispute through the WTO. The hope is that the US would have lived up to their trade practices.
“It’s process that has to be followed, we understand it’s important for Canadians and Canadians’ jobs.”
The USDA is calling for a shrinking supply of beef in 2013 and 2014. Large grass fires in the southwest and a shrinking national herd are being blamed for the decrease.
According to its figures, the USDA expects 25.1 billion pounds (11.4 billion kilograms) of beef to be produced by American producers in 2013, which is down 800,000 pounds down from the 2012 figures of 25.9 billion.
Most of the farms within Rocky View do not export to the US.
The Alberta government recorded the total number of farms in the Calgary area at 3,332 with the value of livestock estimated at $346 million.
