The Canadian government is asking the World Trade Organization to allow it to impose a $3 billion-a-year tariff on U.S. imports.
Canadian officials say their livestock industry is losing roughly $3 billion each year because of food labeling requirements mandated by the U.S. government.
Both Canada and Mexico are fighting the rules, which require producers to list on meat products where the livestock was born, raised and slaughtered.
Supporters say it’s a way for consumers to know where the food they eat comes from.
Critics call it a way to scare off U.S. customers from buying foreign meat.
The WTO ruled the practice is illegal discrimination.
But it’s up to Congress to amend the provision, and U.S. Agriculture officials say they will work with members on Capitol Hill to resolve the issue.