Relationships formed between Canadian, American, and Mexican cattle producers during the country-of-origin labeling (COOL) debates over a decade ago may now serve as a buffer against potential tariffs proposed by U.S. President-elect Donald Trump. During the initial COOL discussions, Canadian cattle producers, alongside provincial and federal representatives, worked diligently to demonstrate to American policymakers that mandatory labeling would harm the U.S. cattle industry.
Progress in opposing the rule was achieved when Canadian producers collaborated with cattle-producing states, fostering alliances that emphasized mutual benefits. These partnerships, along with support from organizations like the National Cattlemen’s Beef Association (NCBA), played a crucial role in overturning the COOL mandate. Nebraska and Iowa were among the first states to recognize the value of trade with Canada, particularly in accessing eastern Canadian markets.
The relationships established during these discussions have endured, with trilateral meetings between Canadian, American, and Mexican cattle producers taking place three times annually. These alliances are expected to remain critical as new trade challenges emerge.
A proposed 25% tariff on Canadian and Mexican goods, including livestock, poses a serious threat to the industry. Such measures could lead to significant declines in cattle markets, undermining the profits Canadian producers have regained since the border closures caused by bovine spongiform encephalopathy (BSE) two decades ago.
Both Canadian and American beef herds are currently at 60-year lows, which provides a degree of protection for Canadian producers. With limited domestic supply, U.S. feedlots and packers rely on Canadian cattle, potentially influencing American politicians to maintain access to these lower-cost resources.
While the cross-border relationships built during the COOL discussions offer hope, Canadian cattle producers remain cautious as they face an uncertain trade environment.
