Tuesday, October 28, 2014

WTO meat labeling rule invites backlash from U.S. interest groups

Both sides in a debate over meat labeling have begun pressing their cases over a World Trade Organization decision against labels that specify where animals are born, raised and slaughtered. The WTO said that new U.S. rules requiring those specifics on meat packages would put Mexican and Canadian livestock producers at an unfair disadvantage. Now, the U.S. must decide how to react. The labeling issue has ignited a huge legal and regulatory battle pitting American consumer and farm groups against the meat industry and foreign livestock producers who fear that a “buy American” movement will cut their U.S. sales. The American Meat Institute, which includes Minnesota-based Cargill and Hormel, has sued the government to stop the new labeling measures. It welcomed the WTO report on the U.S. Department of Agriculture’s so-called COOL — country of origin labeling — rules. “USDA’s mandatory COOL rule is not only onerous and burdensome on livestock producers and meatpackers and processors, it does not bring the U.S. into compliance with its WTO obligations,” the institute said in a statement. “By being out of compliance, the U.S. is subject to retaliation from Canada and Mexico that could cost the U.S. economy billions of dollars.” Cargill did not respond to a request for comment on the WTO report. Labeling supporters are also working to get their voices heard. In an editorial circulated to reporters Monday, Minnesota Farmers Union president Doug Peterson called for an appeal. “The U.S. needs to appeal the WTO’s ruling in defense of rights of American citizens,” Peterson wrote. “And MFU looks forward to working with the USDA and other key stakeholders on a conclusion that is positive both for farmers and for consumers.” Meanwhile, the chances of tariffs and other import restrictions for U.S. farmers and livestock producers who sell to Canada and Mexico remain real. The Canadian and Mexican governments have both threatened to slap supplemental charges on U.S. meat, wine, cheese and exports unless the U.S. reverses meat-labeling rules...more

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