Canada Concerned About, Mexico Says It May Challenge USDA Reg on Country of Origin
USDA said that Product of USA labels -- which continue to be voluntary -- only apply to products derived from animals born, raised, slaughtered and processed in the U.S. (see 2403130053).
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Mexico quickly responded to the announcement that USDA will be issuing regulations, saying this approach discriminates against Mexican producers, and could damage binational production chains, including the live cattle Mexico sends to the U.S., which was about $3 billion worth in 2023.
It could raise prices if the cattle ranching industry concentrates in the U.S., they argued, and it goes against the economic integration principles of T-MEC, as Mexico calls the NAFTA replacement agreement.
Mexico's economy secretary spoke with U.S. officials about reconsidering the regulation, but the press release said if dialogue is unsuccessful, Mexico will consider the dispute mechanisms in the USMCA or using the dispute system at the World Trade Organization.
The WTO ruled in the past that Made in USA marking was discriminatory toward Mexico and Canada, but that was when country of origin labeling was mandatory.
Canada also expressed concern about the rule -- it exported $5.7 billion in cattle to the U.S. last year, according to the Calgary Herald -- but drew a distinction between mandatory and voluntary labeling, only vowing to oppose the former.
Canada's agriculture secretary and trade minister issued a joint statement that said, in part: "Canada will closely review the proposed amendments to the labelling of meat, poultry and egg products in the U.S. and will participate in the U.S. rule-making process to ensure that these changes conform to the U.S.’ international trade obligations and do not disrupt supply chains."