On July 1, 2021, the U.S. Department of Agriculture (USDA) and the Federal Trade Commission (FTC) issued coordinated press releases updating their respective initiatives on US origin labeling. USDA’s release, which applies to beef, promised to initiate a top-to-bottom review of the existing Food Safety and Inspection Services (FSIS) voluntary “Product of USA” label with the goal of ensuring that the “Product of USA” label reflects what a plain understanding of those terms means to U.S. consumers.
Critics of the existing FSIS voluntary “Product of USA” label note that products that are minimally processed (or even just re-packaged) in the USA can qualify for a “Product of the US” label, and that such a label is misleading to consumers. It is anticipated that a proposed rule to address these concerns will move forward shortly, consistent with the Biden-Harris Administration’s Spring Regulatory Agenda.
Canadian Cattlemen's Association (CCA) notes that Secretary Vilsack indicated that USDA will consider input from stakeholders including trading partners and will work collaboratively to meet US international trade obligations. Once the rule is published CCA looks forward to reviewing and commenting alongside the Government of Canada. The CCA is working with the Federal Government of Canada and American stakeholders to ensure recognition and avoidance of interruption to the integrated North American beef system through all labelling efforts.
Further to the July 1 releases, on July 9, 2021 President Biden signed an Executive Order Promoting Competition in the American Economy. The order directs USDA (as Secretary Vilsack had already done) “to consider issuing new rules defining when meat can bear ‘Product of USA’ labels, so that consumers have accurate, transparent labels that enable them to choose products made here,” noting that “under current labeling rules, meat can be labeled ‘Product of USA’ if it is only processed here — including when meat is raised overseas and then merely processed into cuts of meat here” and that U.S. farmers and ranchers are “getting squeezed by foreign corporations importing meat from overseas with labels that mislead customers about its origin.” The substantive Order also covered topics such as consolidation in agriculture and was followed by an announcement from USDA announcing $500 million for expanded meat and poultry processing capacity.