“Product of USA" label rule raises trade concerns

USAgNet - 03/22/2024

The U.S. Department of Agriculture (USDA) has introduced a rule that will change how meat, poultry, and egg products are labeled, starting January 1, 2026. According to the new regulation, the "Product of USA" or "Made in the USA" labels will be reserved exclusively for products from animals born, raised, slaughtered, and processed within the U.S. This decision aims to provide consumers with clear and accurate information regarding the origin of their food.

This move has led to significant concerns among livestock producers in Canada and Mexico. They argue that this rule could hinder their access to the American market, affecting the integrated North American supply chain. The rule is seen as a potential revival of the trade tensions experienced under the previous mandatory country-of-origin labeling (mCOOL) law, which was challenged and eventually repealed after a World Trade Organization (WTO) decision.

Canadian and Mexican officials have expressed disappointment, noting that the rule does not consider the complexities of the North American agricultural trade relationship. They fear it could lead to market segregation and discriminatory practices against non-U.S. livestock imports, echoing past disputes over country-of-origin labeling.

The USDA defends the rule as a necessary step to close loopholes and ensure that consumers are not misled about the origins of their food. Meanwhile, industry stakeholders are calling for alternative solutions that respect the benefits of market integration without imposing unnecessary trade barriers.

As discussions continue, the impact of the "Product of USA" rule on North American livestock trade remains a contentious issue, with stakeholders on all sides advocating for a balanced approach that protects both consumer interests and the agricultural economy.

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