Issue link: http://winesandvines.uberflip.com/i/513570
20 WINES&VINES June 2015 WINE INDUSTRY NEWS W ashington, D.C.—United States trade regulation of imported meat may adversely affect a wide variety of U.S. industries, including wine. Governments of Canada and Mex- ico have threatened to impose "retaliatory tariffs" amounting to some $2 billion if the United States retains regulations first ad- opted in 2002 requiring imported meats to display Country of Origin Labels (COOL). WineAmerica is a member of COOL Reform, a broad-based co- alition of diverse U.S. businesses that would face additional tariffs. Canada's laundry list of imports to be taxed includes not just wine, but other non-meat products: apples, cherries, maple syrup, chocolate, cornflakes, prepared foods, ketchup, jewelry, swivel chairs and wooden office furni- ture. The variety of products would impact industries in virtu- ally every state. WineAmerica members ad- dressed the issue with their state and local elected representatives during their annual "fly-in" earlier this Spring. "We just want to be left out of this fight," which has been brew- ing since the COOL regulations were originally adopted with the 2002 Farm Bill. "The House and Senate need to pass legislation to rescind or amend the regulations," Michael Kaiser, WineAmerica's director of public affairs, told Wines & Vines. The case is being adjudicated by the World Trade Organization (WTO), which said it would an- nounce its final ruling May 16. The European Union recently ex- panded its COOL regulations. Ef- fective April 1, fresh, chilled and frozen meat from sheep, goats, pigs and poultry must bear COOL labels. In the U.S. case, WTO has backed Canada and Mexico, and the ruling is "not expected to go in favor of the U.S.," Kaiser said. This would allow implementation of tariffs as early as mid-summer or fall. "Congress is waiting until the May ruling, then will work to get something in the pipeline to the president before their August recess," he said. Wine Institute urged Congress to address the COOL law to avoid trade retaliation by Canada and Mexico. The meeting was held, according to the Wine Institute, to "build a record for Congress to repeal COOL once the WTO deci- sion becomes final." Based on an earlier Mexican retaliatory tariff increase, WI stated, "COOL-re- lated retaliation would result in a significant loss of sales for Califor- nia wineries. Wine Institute urged Congress to prevent retaliation against U.S. winemakers and other important sectors of the U.S. economy." The international food fight has potentially vast financial implica- tions. Because of its wide-ranging impact, Kaiser said, "Both (political) parties realize it needs fixing." —Jane Firstenfeld Wine Industry Faces Retaliatory Tarrifs " COOL-related retaliation would result in a sig- nificant loss of sales for California wineries. Wine Institute urged Congress to prevent retaliation against U.S. winemakers and other important sectors of the U.S. economy." —Wine Institute