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Facing threat of tariffs from Canada, U.S. Congress set to vote on disputed law

Steaks and other beef products are displayed for sale at a grocery store in McLean, Va., in this Jan. 18, 2010 file photo. House Republicans are hoping to repeal a law requiring country-of-origin labels on packages of meat to avoid costly trade retaliation from Canada and Mexico.
Steaks and other beef products are displayed for sale at a grocery store in McLean, Va., in this Jan. 18, 2010 file photo. House Republicans are hoping to repeal a law requiring country-of-origin labels on packages of meat to avoid costly trade retaliation from Canada and Mexico. THE CANADIAN PRESS/AP/J. Scott Applewhite

WASHINGTON – The United States Congress could take a big step back tonight from a potential trade war with Canada.

A law at the heart of a cross-border dispute faces a key vote in the House of Representatives and, if it’s adopted there as expected, it would face a final test in the Senate.

READ MORE: Canada wants $3 billion tariffs on U.S. goods as trade war escalates

The legislation would repeal a requirement for country-of-origin labels for meat, mandatory grocery stickers explaining where livestock was born, raised and slaughtered.

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Label defenders say consumers deserve to know where their meat comes from, while opponents say it’s just protectionism, complicating imports without any food-safety or inspection benefits.

WATCH: Canada may retaliate over long-running meat labeling dispute

The World Trade Organization sided with Canada and Mexico against the labelling and Canada has applied to impose US$3 billion in retaliatory tariffs on a range of American products.

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Congress is now weighing the repeal, to avoid tariffs that could kick in as early as this year on products like U.S. wine, meat, chocolate and frozen orange juice.

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