Mexico rejects U.S. labeling of meat, poultry and egg products
Mexico's Secretariat of Economy (SE) rejected last Thursday, March 14, the final labeling rule for meat, poultry and egg products announced last Monday by the United States, considering it "discriminatory" against Mexican producers and creating barriers in binational production chains.
Mexico's Secretariat of Economy (SE) rejected last Thursday, March 14, the final labeling rule for meat, poultry and egg products announced last Monday by the United States, considering it "discriminatory" against Mexican producers and creating barriers in binational production chains.
" Mexico's Secretariat of Economy rejects the recent announcement by the United States Department of Agriculture (USDA) regarding the finalization of the 'Product of USA' labeling rule procedure," the agency condemned in a statement.
In particular, Mexican exports of live cattle and beef and its derivatives, which in 2023 amounted to 3 billion dollars (2.758 billion euros at today's exchange rate).
The SE made this statement in response to the announcement made by the USDA, which indicated that the "Product of USA" labeling will be exclusive when the products are derived from animals born, raised, slaughtered and processed in that country.
The agency emphasized that this measure threatens to generate disruptive effects in food chains, as well as logistical complications and additional costs, which would ultimately end up being paid by Mexican producers, "but above all by U.S. consumers".
It also stated that this measure violates the principles of economic integration that underpin the Mexico, United States and Canada Agreement (T-MEC), and is counterproductive at a time when the productive linkage between the three North American nations has intensified as never before.
It also urged U.S. authorities to reconsider this rule and intensify dialogue with their Mexican counterparts to avoid negative repercussions on bilateral trade.
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It was recalled that origin labeling has been a recurring issue in the trade relationship, as since 2002, a measure of this nature promoted by the United States was declared inadmissible by the World Trade Organization (WTO).
"At that time, the final ruling quantified the damage to Mexico at 227 million dollars. Years later, the United States decided to withdraw the measure in order to comply with the ruling and avoid the imposition of costly retaliations," the statement explained.
It reiterated its commitment to constructive dialogue to resolve differences with the United States, which it described as "its main trading partner".
Finally, it warned that it is "carefully" analyzing the possibility of using the mechanisms available in both the T-MEC and the WTO to ensure that the United States complies with its commitments regarding Technical Barriers to Trade.
A formal dispute could add to lingering tensions between Mexico and the United States, as the two countries are already engaged in long-running feuds over the Mexican government’s nationalistic energy policies and its plan to phase out all genetically modified corn imports.
