Despite pressure from its neighbor to the north, the United States has continued its push toward “country of origin” labeling for meat products from that region. The supposed intent is to make meat products safer and more transparent for customers.
But according to the CBC, it could cost Canada $1 billion to institute the changes necessitated by the country of origin labeling (COOL) regulations in the U.S.. And it wouldn’t necessarily go without cost to American companies either, as businesses would have to account for all of the specific labeling and related processes that would go into its production. However, the labels could cause American consumers to favor domestic products in the marketplace.
RT has reported that Canada is, as a response, considering firing back at the U.S. with hefty taxes on exported goods that would put the same kind of financial burden on the United States.
The CBC quoted John Masswohl of the Canadian Cattlemen’s Association on the impression given by the American government’s recent decision.
“It just seemed that through the negotiations, there was more to it for the COOL proponents than just consumer information; it seemed they were very intent on maintaining the discrimination — that was the fundamental objective they had,” he said.
Mexico is also reportedly considering taking action similar to Canada, with whom it has been in agreement for most of this ongoing situation. The action of the proposed U.S. measures would reportedly be in effect for five years.
As one can see, food labels represent a significant cost for businesses to consider, which is why the label printers that your company uses need to be cost-efficient in order to reduce the strain presented by major government policies.