(TDB) - The US wine industry faces billions of dollars’ worth of lost sales if Congress doesn’t intervene to prevent a hike in export tariffs by Canada and Mexico, a trade body has warned.

The billion-dollar US wine market in Canada and Mexico is under immediate threat as the two countries seek retaliation for the way in which some of their imported American meat is labelled.

Canada and Mexico have the backing of the World Trade Organization, which announced yesterday that the United States faces economic damages totalling $1.01 billion (£730m) in tariffs if it does not repeal its Country of Origin meat labelling.

Canadian and Mexican market authorities argue that this labelling gives imported US meat an unfair advantage over local products.

Robert Koch, president of Wine Institute, said: “We know US wine is on their target lists. Retaliation by Canada and Mexico would set our wine exports back decades and cost billions of dollars in lost sales over time”

The trade body representing producers behind 90% of American wine exports is calling on Congress to take action to remove the controversial Country of Origin labelling before the tariff hike is introduced.

In a stark warning, Koch said: “Without Congressional action now to bring the U.S. into WTO compliance, retaliatory tariffs could be in place before Christmas.”