Canada and the European Union are heading for a showdown in the dispute over Europe's ban on Canadian beef treated with growth hormones.

If the EU doesn't back down soon, Canada has said it will hit a number of imports with heavy tariffs, including Nutella, English marmalade, gin, Perrier, and cucumbers.

Canada's preliminary list targets more than $300 million in goods.

The EU imposed the ban on the grounds that hormone-treated beef is not healthy. But, the World Trade Organization found the ban was not based on proper scientific evidence and set a deadline of May 13 for the EU to end its ten-year ban.

The United States, which is also affected by the European ban, is also drawing up a list of targets for retaliation.