April 29 2009 (FoodBizDaily) -
International Trade Minister Stockwell Day said Canada has issued notice to the Obama administration informing that Canada intent to file a complaint with the World Trade Organization on country-of-origin labeling requirements affecting Canadian meat exports.
The dispute is regarding labeling regulations issued in February that require U.S. producers to indicate the country of origin of the food product. Initially, the regulations seemed to be fair, said Day. But lately, some U.S. producers have been declining or segregating Canadian-born animals due to the new rules.
Nevertheless, Tom Vilsack, the U.S. agriculture secretary, has since tightened the regulations even further, warning food producers of new mandatory rules upon failure to comply. Vilsack has been under pressure from U.S. farm groups that consider the original labeling rule too lax.
Canada has asked the U.S. to clarify its position, Day said, because the rule has already caused Canadian farmers’ business to decline. This year, Canadian pork exports to the U.S. fell 40% while cattle exports dropped 25% — and Canadian producers blame country-of-origin labeling. Canada exports livestock worth about $4 billion annually to the U.S.
Canada also raised its concerns over reports that Canadian companies are being barred from bidding on U.S. projects due to the "Buy American" provisions in U.S. economic stimulus legislation. Day stressed that Canada wants the U.S. to be as open on the prosperity side as it is on the security side (of the Canada-U.S. border).