Tuesday, May 26, 2009

U.S. Food Labelling Unfair and Uneconomical

(Michael J. Armstrong — The ChronicleHerald)

When Canada recently resumed its World Trade Organization challenge of the U.S. Country-Of-Origin Labelling (COOL) laws, we were in effect doing both countries a favour. That’s because COOL in its current form is unfair, uneconomical and unjustified. COOL has more to do with protecting U.S. livestock producers than protecting U.S. consumers.

Signed into law last March, COOL affects certain foods that come from a foreign country but are packaged in the U.S.A. If an American packing plant buys hogs from Canada to make pork chops, U.S. grocery stores selling those chops must identify the meat’s Canadian origin. In principle, this sounds good.

In practice, however, meat packers don’t want the extra work required by COOL, which forces them to track which country the meat in each package comes from. For example, steaks from American cattle must be labelled “Product of the U.S.” whereas steaks from Canadian cattle must be labelled “Product of Canada and the U.S.” Since Washington forbids general labels such as “Made from U.S. and/or Canadian cattle,” packers must change their operating procedures to handle Canadian animals separately from American ones.

U.S. processors are already cutting back on imports. Sales of Canadian cattle and hogs into the U.S. have plunged as more American plants stick to domestic livestock so they simply can label everything “Product of the U.S.” So the labelling law is costly because it affects much more than labels. It is harming Canadian producers. Read more here.