Tariffs by Alex

     Last week our class learned about international trade. International trade is when countries trade with one other countries. The main objectives for countries are to trade with one another in order to buy products that aren’t sold or made domestically. The imported products might be different from products in their country or it might just be cheaper. We also learned that countries benefit from specializing in products that they can produce more efficiently than other countries.

     I want to talk about tariffs being imposed on certain products from the United States. I found an article from the Calgary Herald called, “Threat of tariffs drawing closer U.S. refuses to budge on meat labeling.” After the first meeting of  NAFTA Agriculture Ministers in Mexico,  Gerry Ritz, the federal Agriculture Minister said Canada is not afraid to set a tariff on certain U.S. products. The United States wants to enforce a country of origin law (COOL). This means meat products exported from the U.S. imported by Mexico and Canada would be labeled on where the animal was born, raised and slaughtered. The meat wouldn’t be labeled on where the animal was sold. Canada and Mexico are opposed on this idea. 

 

 

     Canadians who export their livestock, say that they are losing more than $1 billion a year because of the increased processing and handling costs.

     The Mexican government, as requested by Ritz, is pressuring Mexican companies with its own list of U.S. products that may be tariffed. 

     As a result of COOL, some U.S. meat plants like Cargill packing plant in Texas and National Beef Packing Co. plant in California, were closed because they were accused of minimizing cattle supply from Canada and Mexico. 

     In my opinion, United States is trying to get more money by suggesting this law and by charging Canada and Mexico more for processing and handling costs. I also think that the U.S. is trying to take credit for the animals just because they are born in the U.S. Most of the labor like the slaughtering and selling of the product, is done in Canada and Mexico. To me, Canada and Mexico are justified in setting the tariffs on the United States. 

 http://www.youtube.com/watch?v=sPctpQkot2c 

Works Cited

Stephenson, Amanda. "Threat id tariffs drawing closer as U.S. refuses to budge on meat labeling." Calgary Herald. 21 May 2014. Web. 9 June 2014.  http://www.calgaryherald.com/life/Threat+tariffs+drawing+closer+refuses+budge+meat+labelling/9863780/story.html