Canada has won an important battle in an ongoing trade dispute with the United States over meat labelling laws that have hurt the beef and pork industries.
The World Trade Organization has ruled that U.S. country-of-origin labelling (COOL) rules discriminate against exports from Canada and Mexico.
The rules, which went into effect in 2008 and were updated last year, are blamed by the Canadian beef industry for reducing meat exports to the U.S. by half.
The WTO compliance panel says COOL breaks trade rules because it treats Canadian and Mexican livestock less favourably than U.S. livestock.
The panel says changes the U.S. made to the rules last year made the policy even more detrimental to livestock exporters.
Agriculture Minister Gerry Ritz, who is to comment on the ruling later today, has said he expects the U.S. may appeal the ruling before the trade battle is finally resolved.
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