THE TTALK QUOTES 

On Global Trade & Investment

 

Published Three Times a Week By

The Global Business Dialogue, Inc.

Washington, DC   Tel: 202-463-5074

Email: [email protected]

 

No. 40 of 2015 

THURSDAY, JUNE 11, 2015      

 

   

Filed from Portland, Oregon  

     

Click here for Tuesday's quote from Rep. Collin Peterson.


COOL - WINE AND A VOTE FOR REPEAL

"Canada imports 90 percent of its table wine from my home state of California.  If the tariff is increased to 100 percent, that will mean customers in Canada will have to pay double for a bottle of good California wine.  If consumers in Canada see that price double, I suspect they are going to buy their wine elsewhere."

Rep. Jim Costa (D-CA)
June 10, 2015
CONTEXT
Congressman Costa represents the 16th Congressional District in California's agricultural rich Central Valley.  Today's featured quote is from his statement on the floor of the House of Representatives yesterday, prior to the vote on legislation to repeal the current country of origin labeling requirements for beef, pork, and chicken.
  
Mr. Costa had lots of company when he cast his vote in favor of the "Country of Origin Labeling Amendment Act of 2015," H.R.  2939.  The final tally was 300 for repeal to 131 against.  The question now is whether the Senate will follow suit or whether it will choose a different path.

COMMENT
Senators have taken note of the vote in the House.  Senator Pat Roberts (R-Kan), the chairman of the Senate Committee on Agriculture, Nutrition, and Forestry, issued a statement last night praising the House for its action and his counterpart there, Rep. Mike Conaway for his leadership.  "I applaud the House for its swift action to prevent retaliation from Canada and Mexico," Senator Roberts said.

In the same press release, Senator Roberts talked about his approach to the issue as chairman of the Senate Agriculture Committee.  "I am continuing to take suggestions from my colleagues in the Senate for alternatives that meet our trade obligations," he said.  At the same time, he acknowledged that "repeal remains the surest way to protect the American economy from retaliatory tariffs."

As for the alternatives to repeal, House Agriculture Committee Chairman Mike Conaway mentioned one possibility in his remarks yesterday, though only to dismiss it.  Rep. Conaway said:

"In a recent letter to Congress, Secretary [of Agriculture] Vilsack reaffirmed the need for Congress to repeal the disputed COOL requirements or develop a generic North American label.  However, Canada and Mexico have previously rejected the North American label, rendering that option unacceptable.

"In other words, if we go down this path which Canada and Mexico have rejected, we will continue to face retaliation unless and until we can demonstrate we are in compliance with our trade obligations."

And that retaliation could hit fairly quickly.  Canada's Minister of Agriculture Gerry Ritz said after the vote that "the only way for the United States to avoid billions in retaliation by later summer is to ensure legislation repealing COOL passes the Senate and is signed by the President."

Mr. Ritz's threat is real enough, but the argument to focus on is the one Mr. Conaway made.  His comment, in effect, explains the significance of the "fourth and final" ruling by the WTO on May 18.  It took years for Canada and Mexico to reach this point, the point where they will have the WTO's blessing for retaliation against the United States.  If they do retaliate, it could take years for the U.S. to convince the WTO that the situation has changed and retaliation is no longer warranted.

RELATED EVENT - JUNE 16
Don't take our word for all of this.  There is an impressive line-up of experts who will address the COOL issues next Tuesday, June 16, at this GBD-NPPC event:

THE NEXT SHOE TO DROP:COOL and the Threat of Trade Retaliation
9-10:30 a.m. at the National Press Club

You should be there.  Click the title link above for more information or simply here and register now.
SOURCES & LINKS

From the Record is a link to pages from the Congressional Record of June 10, 2015, with the today's featured quote from Congressman Costa as well as the quotes from Chairman Conaway. 


Roberts Reacts is a link to the press release by Senator Roberts in in response to yesterday's House vote on COOL. 


Pressure from Canada takes you to a story in the Ontario publication Better Farming with the comment from Canada's Minister for Agriculture Gerry Ritz.  

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� 2015 The Global Business Dialogue, Inc.

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Tel: (202) 463-5074

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