The on-going trade strain in U.S./Canada and US/Mexico relations tightened after the new amendments to the COOL (Country of Origin Labeling) Law were published in the federal register on Monday. The amendment would require that it should be clearly stated in the origin designation, where each production step took place. Therefore, it is expected that cut meat will be labeled showing the country where the cattle was born, raised and where it was slaughtered. This is indeed a much-improved version of the previous method of labeling that simply stated ‘mixed origin.’
Canada and Mexico however, feel that the new amendments do not exactly meet the requirements of the WTO (World Trading Organization) standards. They argue that with such regulations, there will be further discrimination against their exports, which will be more expensive due to the increased cost of labeling that the producers will have to carry, harming their production industry. They stated that plants would have to undergo more stringent separation procedures and they would have to take on finer, more expensive record keeping procedures that would in turn increase the cost of their exports.
Consumers however, applaud the changes, since they are clearer than the previous version of labeling. In addition, the mixing of cut commodities from different origins would be reduced as a result of the changes, making it easier for the consumer to make a more informed choice while shopping. The downside, though, is that this exclusion will overburden producers and retailers, thus increasing the cost of the cut meat further.
The public can submit their comments on the new regulations in the thirty-day period before the new regulations are put in to effect. On their part, Canadian official may pass on complaints to the WTO should the regulations be implemented as currently stated. There are however, compensation methods that could be looked into to soothe the effects of the regulations on Canadian exports.
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