TODD KOROL/REUTERS -
Ground Alberta beef is seen in coolers at a meat market in
Canada. The United States is poised to introduce stricter rules
on the labeling of meat imports, a move that is likely to heat
up a simmering trade dispute with Canada and Mexico.
New rules for
U.S. meatpackers will require labeling that
tells consumers where the animal was born,
raised and slaughtered.
Sounds simple.
But the regulations, posted Friday by the Department of
Agriculture, are the latest move in a
trade dispute that has pitted U.S. consumer groups, which
favor the labels, against free-trade advocates, who say the
regulations are biased against cattle and pork from Canada and
Mexico.
Nor are the regulations likely to be the last word in the
international controversy, which seems destined to wind up —
again — before the World Trade Organization, which has
previously ruled that U.S. labeling regulations
discriminated against Canadian and Mexican livestock.
The dispute over meat labeling is one of a handful in recent
years in which U.S. efforts to regulate food and other products
have been rejected by the WTO. The WTO has ruled against U.S.
“dolphin-safe” tuna labels and weighed in as well against a ban
on clove-flavored cigarettes.
“The big lesson for American consumers is that the WTO has
invaded aspects of our lives that have nothing to do with
trade,” said Lori Wallach, director of Public Citizen’s group on
trade issues. “They have come to your dinner table. Depending on
what the WTO does, either consumers will be provided with
important information, or the U.S. may face trade sanctions.”
The dispute over meat labeling promises to continue.
While U.S. Agriculture Secretary Tom Vilsack says the new
rules on meat labeling will bring the United States “into
compliance” with trade obligations, Canada disagrees and Mexico
has already complained about the regulations.
“Canada is extremely disappointed with the regulatory changes
put forward by the United States,” according to a statement from
the Canadian trade and agriculture ministers, Ed Fast and Gerry
Ritz. “These changes will increase discrimination against
Canadian cattle and hogs and increase damages to industry on
both sides of the border.”
“Mexico regrets that the U.S. Department of Agriculture has
chosen to propose amendments to the regulations that would
exacerbate the adverse impact [of the labeling program] on
bilateral trade,” Mexican trade and agriculture ministers
Kenneth Smith Ramos and Carlos Vazquez Ochoa wrote.
The meat labeling dispute dates back to March 2009, when the
United States required that meat be labeled with its country of
origin — without specifying, as the new rules do, where the
animal was born, raised and slaughtered.
Canada and Mexico objected to those rules, arguing that the
hassles of tracking each animal’s nationality prompted
slaughterhouses to prefer animals that had been born and raised
in the United States. This created a bias against foreign
livestock, they argued.
Canada and Mexico took their concerns to the World Trade
Organization, which ruled against the United States in June.
By making the labeling more specific, the United States
appears to be addressing the WTO’s concern that the record
keeping required under the previous rules was too onerous given
the meager amount of information it gave consumers. The new
rules, which cite more information, better justify the record
keeping required, at least according to the American view.
“The requirement will provide consumers with more specific
information on which to base their purchasing decisions without
imposing any additional recordkeeping requirements on industry,”
the USDA’s announcement said.
The United States estimates that more than 2,800 livestock
processing and slaughtering companies, 38 chicken processing
companies and about 4,300 retailers will be affected by the new
rules. Officials estimated the cost of implementing the rules at
$33 million.
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