WASHINGTON, May 23 – The U.S. government will require meat packers to explicitly list the origin of beef, pork and chicken sold in U.S. grocery stores, it said on Thursday, a regulation intended to resolve years of disputes with Canada and Mexico.
But Canada’s agriculture minister said it will continue to fight the country of origin labeling rules (COOL) which he said had contributed to a sharp decline in Canadian cattle and pig exports, setting up a possible trade war. Canadian livestock groups issued news releases expressing frustration.
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The Obama administration unveiled the new rule on the final day to comply with a World Trade Organization decision, issued in June 2012, that upheld complaints by Canada and Mexico.
Under the new regulation, labels will carry labels such as “Born, Raised and Slaughtered in the United States” for U.S. animals. Meat from other countries could carry labels such as, “Born in Mexico, Raised and Slaughtered in the United States.”
No commingling of meat from various nations will be allowed.
“The United States remains committed to ensuring that consumers are provided with information about the origin of muscle cut meats they buy at the retail level,” the U.S. Department of Agriculture said in a statement.
The revised rules take effect immediately, however the USDA will allow a six-month grace period for compliance.
In the original rule, which took effect in March 2009, packages could carry labels saying the meat was from the United States and other nations.
Canadian Agriculture Minister Gerry Ritz said the changes are disappointing, and don’t comply with WTO rules.
Ritz said one of Canada’s options under consideration is asking the WTO to approve retaliation against U.S. products, but he would not say which products Canada would most likely target. In the past, he has said Canada would likely aim at more goods than just U.S. meat.
“We have no intention of backing off or backing down, if the Americans think this is a game of chicken,” Ritz said. “We will do everything within our power to make sure they understand that both Canadian industry as well as American industry (are) totally rejecting what they came forward with today.”
Canadian livestock groups were forceful in their rejection of the U.S. position.
“The US is gaming the system at our expense, their behaviour and the bad faith reflected by the new COOL rule is appalling,” said Canadian Pork Council vice chairperson Rick Bergmann.
“This existing measure has cost Canadian live swine and beef cattle producers more than a billion dollars annually. Canada needs to respond forcefully,” .
Canadian Cattlemen’s Association President Martin Unrau said, “It is extremely frustrating that the United States is continuing to inflict these costs on Canadian producers.
“USDA has demonstrated that they have no intention of attempting to end the discrimination and it is time they experience some consequences.”
COOL was backed by U.S. consumer groups and some U.S. farm groups. It was opposed by trade groups representing U.S. cattle and hog producers and foodmakers.
“People have the right to know where the food they feed their families comes from,” said Wenonah Hauter, executive director of Food and Water Watch.
But Scott George, a Wyoming cattle producer and president of the National Cattlemen’s Beef Association, said the USDA’s action risks retaliatory action against U.S. beef, which would be “devastating” for farmers.
