TL;DR: Mexico and Canada have voiced strong objections to the United States’ new “Product of USA” labelling guidelines for meat products, asserting that the rules could unfairly disadvantage North American producers. The disagreement centres on the voluntary label’s criteria, which demand that products must come from animals born, raised, slaughtered, and processed entirely in the U.S. Both countries are considering action through international trade agreements to resolve this contentious issue.
Last week’s announcement by Agriculture Secretary Tom Vilsack about the “Product of USA” label has stirred international waters, drawing criticism from neighbouring trade partners Mexico and Canada.
This voluntary label, aimed at enhancing consumer awareness and trust, might have unintended diplomatic consequences, as it is seen as potentially discriminatory by Mexico and overlooks the longstanding trade relationships cherished by Canada.
Mexico’s Ministry of Economy did not mince words, expressing concerns that the labelling requirements could disrupt the integrated supply chains that have long supported the North American livestock industry. With Mexican cattle and beef exports to the U.S. reaching $3 billion in 2023, the stakes are high.
The threat of pursuing recourse through the U.S.-Mexico-Canada Agreement (USMCA) and the World Trade Organization underscores the gravity with which Mexico views this issue.
Similarly, Canada’s disappointment, as voiced by Agriculture Minister Lawrence MacAulay and International Trade Minister Mary Ng, reflects apprehension about the impact on its exporters.
The shared sentiment between Mexico and Canada is a call for reconsideration of the label’s criteria to ensure it does not erode the foundation of North American agricultural trade.
The “Product of USA” label, while aimed at promoting transparency and fairness in the U.S. market, raises important questions about how domestic policies intersect with international commitments.
The call for dialogue and collaboration from Mexico, alongside Canada’s intention to address this issue at the upcoming trilateral agriculture ministers’ meeting in Colorado, signifies a pivotal moment for North American trade relations.
This dispute over labelling standards highlights a broader debate on balancing national interests with the imperatives of international cooperation and trade harmony. As these discussions unfold, they will test the resilience of North American trade agreements and the commitment of the involved nations to resolve differences amicably and equitably.
