What seems like a simple labeling rule change in the United States has sparked a potential trade dispute with Mexico. The new “Product of USA” rule, which aligns the voluntary labeling claim with stricter guidelines for domestic origin, has raised objections from Mexico, a key trading partner.
The United States Department of Agriculture (USDA) finalized the rule to ensure that the “Product of USA” label is used only on meat, poultry, and egg products that are entirely born, raised, slaughtered, and processed within the United States. This is a significant departure from the previous policy, which allowed the label to be used on products from animals imported from foreign countries and then processed in the U.S.
While the USDA argues that the new rule aims to prevent misleading labeling and provide consumers with accurate information about the origin of their food, Mexico sees it as a threat to its meat exports to the U.S. With nearly $3 billion worth of cattle and beef exports to the U.S. last year, Mexico is concerned that the rule change will disrupt its supply chains and lead to a decline in sales.
The Mexican Economy Ministry has expressed disappointment and concern over the rule, stating that it violates the principles of economic integration under the USMCA free trade pact. Mexico’s Ministry of Agriculture and Rural Development (SADER) has called for consultations between the two countries to reconsider the rule, emphasizing the importance of acknowledging the integration of the livestock and meat industries in North America.
Mexico’s response underscores the complexity of international trade relationships and the potential impact of seemingly minor regulatory changes. As both countries navigate this issue, the outcome could have broader implications for trade agreements and cooperation in North America.
(Source: Market Watch | Morning Star | Mexico Business Daily)
