A trade war between Canada and the U.S. appears to have been averted, with U.S. Congress drafting legislation that responds to its neighbours' demands on meat labelling.
The bill would repeal mandatory country-of-origin labelling on beef and pork should it pass a vote in the coming days, which would end a years-long dispute pitting the U.S. against Canada and Mexico.
Lawmakers are expected to begin debate Wednesday on a monster omnibus bill. Meat labels are just one brief provision in the 2,000-page omnibus package negotiated between Republican and Democratic leaders, which has major economic implications far beyond the labelling dispute.
Canada awaits U.S. Senate's next move on meat labelling law
With temporary financing of federal agencies expiring Wednesday at midnight, congressional leaders planned to approve a stop-gap bill preventing a government shutdown through next Tuesday, giving lawmakers time to finish the long-term spending legislation.
The two-part compromise announced Tuesday included a $1.1 trillion measure funding federal agencies in the 2016 federal budget year that started Oct. 1. A separate bill, roughly estimated at around $650 billion over the next decade, renews around 50 business and individual tax breaks that have expired or are about to lapse.
Republicans are claiming a win on the bill by including a provision that would lift America's 40-year ban on exporting crude oil outside NAFTA, which was created during the energy crisis in the 1970's.
Meat labelling a major issue for Canada
The repeal of the labelling law had been signalled in advance: Canada and Mexico were poised to immediately impose $1 billion in tariffs on a wide range of American products including wine and frozen orange juice following wins at the World Trade Organization.
Canada's ambassador to the U.S., Gary Doer, welcomed the news but said he wouldn't be celebrating until the bill passes both chambers of Congress and gets signed by the president.
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