Canada and Mexico have announced that they will be seeking more than a combined $3 billion in retaliatory tariffs against U.S. products as a result of the U.S. country-of-original labeling practices on fresh beef and pork products. The proposed tariffs are the next step in the battle between the United States and its neighbors in the World Trade Organization. The recent rejection of the last U.S. appeal meant that Canada and Mexico could place tariffs on U.S. products if they could prove that the COOL rule has harmed their exports.

Ed Fast, Minister of International Trade, and Gerry Ritz, Minister of Agriculture and Agri-Food, today announced that Canada will seek WTO authorization to impose over $3 billion in retaliatory measures against U.S. exports to Canada. According to CBC News, the country is seeking up to 100% tariffs on a variety of U.S. products, including fruits, vegetables, grains, pasta, chocolates, baked goods, prepared food, jewelry, liquor, wine and furniture.

“Despite the WTO’s final ruling that U.S. country of origin labelling measures are discriminatory, the United States continues to avoid its international trade obligations. Our government will now move ahead under the WTO process and seek authorization for over $3 billion in retaliation,” Fast said. “We continue to call on the United States to repeal COOL, cease this harmful policy and restore our integrated North American supply chain to the benefit of businesses and workers on both sides of the border.”

Mexico is also seeking punitive sanctions against the U.S. worth $653 million, reports the International Business Times.

"The governments of Mexico and Canada will keep working closely to resolve this important commercial dispute with the United States, with an aim to defend our farmers and breeders and maintain jobs and economic prosperity in all of North America," Mexico’s economy ministry said in a statement.

Sources: International Business Times, Foreign Affairs & Trade and Development Canada