Product of U.S. meat label could disrupt cross-border trade

New label is the most onerous in the world, the CCA says

Ottawa—New product of USA labeling could disrupt cross-border business for Canadian beef and pork products.

Beginning in 2026, the U.S. Department of Agriculture will allow voluntary Product of USA or Made in the USA labels that to be used only on products derived from animals born, raised, slaughtered and processed in the U.S.

Agriculture Minister Lawrence MacAulay and Trade Minister Mary Ng said Canada is “concerned about any measures that may cause disruptions to the highly integrated North American meat and livestock supply chains.”

The government will review the rule’s impacts and implementation and how it meets U.S.’ international trade obligations “to ensure our meat sector can continue to enjoy predictable and unhindered access to the United States market.”

The meat and livestock sectors in the two counties work closely together to support food security as well as local and regional food systems, the minister said in a statement. “Our indispensable relationship allows producers, processors and consumers on both sides of the border to benefit from efficient, stable and competitive markets, while ensuring a reliable supply of high-quality products.”

Current U.S. rules permit allows voluntary use of such labels on products from animals that have been imported from a foreign country and slaughtered in the U.S. as well also on imported meat that is repackaged or further processed.

Nathan Phinney, President of the Canadian Cattle Association, said the rule sets “the most onerous standard in the world. It is crucial to address any issues that threaten or diminish cattle and beef trade between Canada and the U.S.

“We are very concerned that the rule will lead to discrimination against live cattle imports and undermine the beneficial integration of the North American supply chain.”

The voluntary labeling rules are different from the U.S. country-of-origin labels, which required companies to disclose where animals supplying beef and pork were born, raised and slaughtered. They were rolled back in 2015 under a ruling from the World Trade Organization.

The Canadian Federation of Agriculture said “the new regulations could lead to disruptions in meat and livestock supply chains, which are highly integrated between North American nations. We understand that our government is looking to raise issues with this decision in the near future. We will be monitoring the impacts of this decision on Canadian livestock and meat movement between Canada and the U.S.”

Chris White, President and CEO of the Canadian Meat Council, said, “For decades, we have worked with our North American counterparts to create one of the most integrated markets in the world; one that stimulates commerce and satisfies consumers on either side of the border.

“Through close engagement with our government, the Canadian Meat Council will continue advocating for reduced barriers to entry and ensure label claims do not restrict Canada’s red meat industry from a market that we’ve exported over $11.3 billion to and imported nearly $4.9 billion worth of pork, beef, and veal products from since 2022 alone.”

The joint statement from MacAulay and Ng said Canada is "reviewing the final rule carefully. Our indispensable relationship allows producers, processors and consumers on both sides of the border to benefit from efficient, stable and competitive markets, while ensuring a reliable supply of high-quality products.

“Canada remains concerned about any measures that may cause disruptions to the highly integrated North American meat and livestock supply chains.

This news item was prepared for National Newswatch