Mexico’s Secretariat of Economy (SE) recently voiced strong opposition to the final labeling rule for meat, poultry, and egg products announced by the United States Department of Agriculture (USDA). The SE deemed the rule “discriminatory” against Mexican producers and argued that it poses significant challenges to binational production chains.
In response to the USDA’s announcement regarding the “Product of USA” labeling rule, the SE condemned the measure, stating that it could disrupt food chains, create logistical complications, and impose additional costs, ultimately impacting Mexican producers and U.S. consumers alike. The agency emphasized that Mexican exports of live cattle and beef, valued at $3 billion in 2023, could be particularly affected by the new rule.
Furthermore, the SE asserted that the labeling rule violates the principles of economic integration outlined in the Mexico, United States, and Canada Agreement (T-MEC). It emphasized the importance of intensified dialogue between U.S. and Mexican authorities to mitigate negative repercussions on bilateral trade.
Highlighting previous disputes over origin labeling, the SE recalled a 2002 measure promoted by the United States that was deemed inadmissible by the World Trade Organization (WTO). This measure resulted in significant financial losses for Mexico, prompting the United States to withdraw it to avoid retaliatory actions.
Expressing a commitment to constructive dialogue, the SE emphasized the importance of resolving differences with the United States, Mexico’s primary trading partner. However, it cautioned that it is carefully considering the possibility of utilizing mechanisms available under the T-MEC and the WTO to ensure U.S. compliance with its trade commitments.
The potential escalation of the dispute could further strain relations between Mexico and the United States, already under pressure due to disagreements over Mexico’s energy policies and its plan to phase out genetically modified corn imports.
