Canadians are the best foreign customers for
high-value U.S. foods, says a new report from the U.S. Department of
Agriculture.
And that, says Meatingplace Magazine, makes
those exports a prime target if the World Trade Organization rules that Canada
is justified in complaining about the Country of Origin Labeling (COOL)
regulations that have depressed Canadian hog and cattle prices by a combined
total of more than $1.6 billion per year.
If the U.S. fails to scrap the offensive COOL
provisions after WTO rules them illegal, as it did for an earlier version of
COOL, then Canada could seek permission to apply tariffs to U.S. exports.
The report says Canada remained the top
destination for “U.S. exports of high value agricultural products, with a total
of nearly $17 billion” last year.
The category includes meat, fresh and processed
fruits and vegetables, prepared food, snack food, wine and beer, and pet food.
Those are items Canada has already included on a list to which it would apply
tariffs if it wins at the WTO.
These U.S. consumer-oriented products typically
sell directly from small and medium-sized U.S. processors to Canadian
supermarkets and restaurants, says the report.
Overall, Canada is the second-largest export
destination for U.S. agricultural products, totaling $21.3 billion in 2013.
Canada follows China, the first export market
since 2010, which bought $25.9 billion worth of U.S. agricultural exports.
“It is also interesting to point out that
overall U.S. exports of agricultural products grew by two percent from 2012 to
2013, totaling $144.1 billion.
“During the same time period, U.S. agricultural
exports to Canada grew by 3.4 percent, while U.S. exports to China remained
flat (0.1 percent growth rate),” the report says.
