U.S. Avoids $1 Billion Tariffs; Bayer Looks Toward Expansion
Following its passage, Canadian officials praised the U.S. spending bill that included a repeal of mandatory meat country-of-origin labeling. The repeal averted a potential trade war as the bill avoids $1 billion worth of retaliatory tariffs Canada and Mexico were authorized to impose on the United States. A Canadian trade official called the repeal of COOL “a real vindication of the power and significance of the WTO dispute-resolution mechanism.” Canadian officials said they still planned to obtain formal approval this week from the WTO for retaliation, even though the tariffs won’t be imposed.
Bayer could be seeking a major acquisition in the next few years. Reuters reported the recent wave of industry consolidation could undermine Bayer’s position in markets such as crop protection and animal health. Possible targets for the German company could include veterinary drug firm Zoetis and Pfizer's consumer health business. The planned Dow-DuPont merger creates a more formidable rival for Bayer in both the pesticides and seeds businesses while it also eliminates two potential merger partners.