Canada and Mexico won the right to impose trade sanctions on the United States


Moscow. December 8. The world trade organization (WTO) has granted Canada and Mexico the right to impose on U.S. trade sanctions a total of $1 billion a year.

Canada may increase duties on imports of U.S. products by $780 million, Mexico – $228 million

Initially, the countries requested compensation three times, according to BBC News.

A trade dispute between the three countries began in 2009, when the U.S. demanded that the shops used special labels for packages of meats stating where the animal was born, grown and killed. This was to raise the awareness of buyers about the origin of food products. The introduction of this rule was supported by the U.S. farmers who compete with Canadians and Mexicans. At the same time the shops and businesses involved in the packaging of products that were against it because of the increased paperwork.

However, Canada and Mexico were dissatisfied with the new law, as in the USA began to use fewer cattle grown in other countries. As a result, the revenues of the canadian and Mexican farmers fell.

In the U.S. the WTO decision displeased. In the office of the U.S. trade representative has stated that this threatens free trade in North America, and the introduction of fees would adversely affect the economies of all three countries.

American officials urging the Senate to repeal the law on the mandatory indication of origin of goods.

It is not clear what U.S. products are Canada and Mexico can impose sanctions.