(Ipolitics) - An American request for arbitration at the World Trade Organization over Canada’s retaliatory tariff threat in an ongoing dispute over U.S. meat labelling rules will cause lengthy delays, NDP Trade Critic Don Davies warned Thursday.

In an interview with iPolitics, Davies said the arbitration process at the WTO could last months, if not years, depending on where the parties stand on the file.

“If the objective is to stall than it certainly can be months, and it’s not inconceivable that it could be measured in years. It all depends on how fast the parties want to make a move.” Davies said.

On Wednesday, the United States challenged Canada’s economic analysis of the impact mandatory country-of-origin labelling (COOL) has had on the Canadian economy.

In place since 2008, COOL requires producers and processors identify where an animal is born, raised and slaughtered. The policy unleashed a protracted trade dispute between Canada and Mexico on one side and the United States on the other. The WTO has ruled against the policy four times, repeatedly finding the legislation violates international trade rules.

Canada’s red meat sector estimates the rule is costing the industry $1 billion annually. The Canadian government was seeking permission from the WTO to impose more than $3 billion worth of retaliatory tariffs on American products because of COOL.

That process has now been stalled thanks to the American ask for arbitration.

Agriculture Minister Gerry Ritz and Trade Minister Ed Fast have said they are “disappointed” by the American actions, insisting the U.S. is “out of options” and is simply delaying the inevitable.

On Thursday, Davies said he, too, thought the American request for arbitration could be characterized as a delaying tactic, but noted it also reflects the state of Canada’s current relationship with the United States.

“Canada should be able to say to the Americans ‘look we’ve respected the process, we’ve gone to an objective third party, we’ve both presented our evidence and we’ve won repeatedly,” Davies said.

“It’s just that the Americans refuse to accept it.”

The prime minister, he said, should be actively pushing for an end to COOL using all diplomatic channels possible, rather than relying on the lengthy WTO dispute resolution process, which continues to hurt Canada’s meat industry.

“There’s only two victims in this [dispute] and that’s the producers and the Canadians who are losing their jobs” Davies said.

Prime Minister Stephen Harper has said publicly Canada will impose retaliatory tariffs on the United States if COOL is not repealed.

“We will continue to press the United States for compliance but, you know, I can tell you that we are prepared to retaliate at a point in time,” the prime minister said during a question and answer session in Saskatoon in March.

“Obviously, we don’t want to retaliate in a way that would endanger our wider trade interests.  But I will say that at some point, retaliation becomes essential,” he told the Saskatchewan Association of Rural Municipalities.

Both Ritz and Fast have reiterated those threats of retaliation, saying Canada will take action against the United States if COOL is not repealed. More than 30 American products, including beef, pork, cherries, wine and mattresses, could face higher tariffs if the policy remains in place.