Ruling may alter meat labels

Associated Press

WASHINGTON

Shoppers could soon have a harder time finding out where some of their red meat comes from.

The World Trade Organization ruled Monday that U.S. “country of origin” labels on certain cuts of red meat put Canadian and Mexican livestock at a disadvantage, rejecting a U.S. appeal after a similar WTO decision last year. The current labels on packages of steaks and some other meats say where the animals were born, raised and slaughtered.

The Obama administration revised the labels once to try to comply with previous WTO rulings in favor of Canada and Mexico. Now that the revised labels have also been struck down, Agriculture Secretary Tom Vilsack says Congress will have to change the law to avoid retaliation – such as extra tariffs – from the two neighbor countries.

“Congress has got to fix this problem,” Vilsack said after the decision. “They either have to repeal [country of origin labeling] or modify and amend it.”

Though the ruling went against the U.S., it’s a victory for the U.S. meat industry, which has said the labels are costly because of segregation of livestock and record keeping. After the decision, meat processors quickly called for a full repeal of the labeling laws.

Canada and Mexico issued a joint statement also calling on the U.S. to repeal the labeling rules. The two countries said they will seek authorization from the WTO to take retaliatory measures against U.S. exports.

The joint statement of Canadian and Mexican agriculture and trade officials said the rules cause Canadian and Mexican livestock and meat to be segregated from those of U.S. origin – a costly process that has forced some U.S. companies to stop buying exports. The labeling is “damaging to North America’s supply chain and is harmful to producers and processors in all three countries,” the officials said. The two countries said they would “continue to work closely” on the issue with the U.S.

The National Farmers Union, a farm group that has backed the country of origin labels, said negotiations would be better than congressional intervention.

“As we have seen in other disputes, once decisions are handed down, WTO members often work together to find a solution that will work for them,” said National Farmers Union President Roger Johnson. “In this case, such a solution must involve continuation of a meaningful country-of-origin labeling requirement.”