Mexico has served notice on the United States that it objects to the United States Department of Agriculture’s new rule governing the labeling of foods Product of USA.
Mexico is echoing concerns that Canada raised as soon as the new rule was introduced.
Mexico’s Ministry of Economy has asked the U.S. government to reconsider the rule while maintaining dialogue on bilateral trade.
The ministry said the rule, which restricts use of the label to products exclusively produced and processed in the U.S., discriminates against Mexican producers and could compromise what is now $3 billion worth of annual trade in Mexican cattle and beef exports.
The ministry further contended the measure could disrupt food supply chains and add costs that will be paid by Mexican producers, but more so by American consumers.
Mexican officials also argue the measure contravenes the United States-Mexico-Canada Agreement, and is counterproductive at a time when the three nations are more connected in trade than ever.
They cited the World Trade Organization’s ruling in 2002 against a similar U.S. labeling law that Mexico said cost it $227 million. Canada claimed that law cost Canadians billions.
Mexico asked for constructive dialogue but also noted it could appeal to the USMCA pact and the WTO to force the U.S. to comply with its commitments related to Technical Barriers to Trade.
U.S. beef trade groups, such as the National Cattlemen’s Beef Association and the U.S. Cattlemen’s Association, think the new rules are wonderful for clarifying for consumers the origin of U.S. beef products.
