U.S. labelling change sparks concern

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Agriculture groups and senior levels of government say a decision made in the United States to label of meat, poultry and eggs as “Product of USA” will have far-reaching consequences for trade in North America.

The U.S. Department of Agriculture revealed on Monday a finalized rule specifying the conditions under which voluntary “Product of USA” or “Made in the USA” labels may be utilized. The rule, set to be implemented in 2026, allows these labels to be applied solely to meat, poultry and egg products that originate from animals born, raised, slaughtered and processed within the U.S.

The rule represents a notable shift from the current policy, which permits the voluntary use of such labels on products originating from animals imported from foreign countries and slaughtered in the U.S., as well as on imported meat subjected to repackaging or further processing.

Three million pigs and more than $400 million worth of Manitoba pork products are exported to the U.S. from Manitoba every year, said Manitoba Pork chairperson Rick Préjet in a press release issued Tuesday.

“These changes, like the original mandatory policy successfully changed at the World Trade Organization, will significantly impact trade in the integrated Canada-U.S. market, and we are extremely disappointed that the final rule did not consider the concerns expressed by Canada,” he said.

The CCA, which represents beef farms and feedlots, says the rule is “the most onerous standard in the world,” according to a statement by the group, adding that it is crucial the issue be addressed since it could threaten or diminish cattle and beef trade between Canada and the U.S.

“We are very concerned that the rule will lead to discrimination against live cattle imports and undermine the beneficial integration of the North American supply chain,” CCA president Nathan Phinney said in the statement.

Canada’s federal government, alongside associations representing a portion of the country’s beef producers, also issued warnings the United States’ decision concerning labelling could lead to disruptions in supply chains within Canada.

In a press release from the federal government, Agriculture and Agri-food Minister Lawrence MacAulay and Export Promotion, International Trade and Economic Development Minister Mary Ng expressed disappointment in the U.S. decision.

The meat and livestock sectors in Canada and the U.S. have up to now enjoyed a close collaboration, reinforcing food security and supporting local and regional food systems, the ministers said. The vital partnership helps producers, processors and consumers on both sides of the border access efficient, stable and competitive markets, ensuring a consistent supply of high-quality products.

“Canada remains concerned about any measures that may cause disruptions to the highly integrated North American meat and livestock supply chains,” the ministers jointly said in the release.

The final rule, Ng and MacAulay said, doesn’t take into account the concerns the minsters brought forward about the unique and important trading relationship Canada and the U.S. share. They plan to raise the issue during the next trilateral meeting between the agriculture ministers of Canada, the U.S. and Mexico in Colorado later this month.

“We are reviewing the final rule carefully, and will closely monitor its impacts and implementation, including in light of the U.S.’s international trade obligations, to ensure our meat sector can continue to enjoy predictable and unhindered access to the United States market,” the ministers said.

Manitoba Agriculture Minister Ron Kostyshyn and Economic Development, Trade and Natural Resources Minister Jamie Moses reacted to the U.S. decision on the labelling rule in a press release issued Thursday, stating that the trade relationship between Canada and the U.S. will face new barriers going forward.

“Our government is concerned that this final rule discounts our long-standing and positive trade relationship that benefits Manitoba producers and consumers,” the release stated.

The province plans to review the final rule and what its impact on Manitoba consumers, processors and producers will be. The government will work with Ottawa and industry stakeholders, the release said, with the aim of ensuring supply chains are open, barrier-free and supportive of a strong trade partnership between the two countries.

U.S. Agriculture Secretary Tom Vilsack stated in a news release that the forthcoming rule will guarantee consumers that every stage of production, from birth to processing, occurs entirely within the U.S. when they encounter the label.

The voluntary labelling regulations differ from country-of-origin labels, commonly referred to as COOL, which mandate companies to disclose the origins of animals supplying beef and pork, including details on where they were born, raised and slaughtered. However, this requirement was revoked in 2015 following international trade disputes and a ruling from the World Trade Organization.

» mleybourne@brandonsun.com, with files from The Canadian Press

» X: @miraleybourne