As reported earlier, a dispute over meat labelling, has resulted in the WTO ruling against the U.S. and in favour of Canada and Mexico. The next round of the battle involves the possible implementation of retaliatory tariffs. Canada has requested permission from the WTO to introduce a 100% surtax on a number of products if the U.S. does not comply with the ruling (the products are listed here and include U.S. wine). If those tariffs were actually introduced, they would obviously have a very negative effect on the sale of U.S. wine in Canada since prices would sky-rocket. However, the U.S. Congress has already introduced a bill that would repeal the meat labelling law which appears to have broad bi-partisan support as well as support from the U.S. meat processing industry which sees the labelling law as too costly.
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