U.S. bid to resurrect contentious beef labelling rules returns to Capitol Hill

A group of U.S. senators is aiming to bring back mandatory country-of-origin labelling rules for beef, six years after being repealed under the threat of $1-billion in trade sanctions from Canada.

Four U.S. senators — two Republican and two Democrat — recently introduced the American Beef Labeling Act, garnering praise from long-time backers who see the rules as helping struggling ranchers.

"We intend to get this passed as quickly as possible," said Bill Bullard, chief executive of R-CALF USA, a cattle trade association representing about 5,500 farmers and ranchers across 44 states.

Opponents of the bill,  in Canada and the United States, regard the proposed legislation as a long shot but are nevertheless keeping close tabs due to the high stakes and unpredictability of politics inside the Beltway.

The annual value of Canadian exports of beef and live cattle to the U.S. is pegged at between $2.5 billion and $3 billion.

"We're watching — you never know," said Bob Lowe, president of the Canadian Cattlemen's Association.

"It's the world of politics, and sometimes there doesn't need to be a reason."

When the U.S. wielded mandatory country-of-origin labelling rules (MCOOL) last decade, it cost Canadian producers dearly and was blamed for sharp declines in livestock exports south of the border.

It set mandatory labelling for packaged steaks and other cuts of meat, requiring grocery stickers explaining where livestock was born, raised and slaughtered. Opponents saw the rules as protectionist.

Ultimately, it took the World Trade Organization, which ruled that the U.S. violated international trade law, and the threat of hefty sanctions for American lawmakers to repeal the regulations in 2015.

Now, a group of American senators aim to bring it back.

Sen. John Thune of South Dakota said their bill would require the U.S. Trade Representative to develop a WTO-compliant means of reinstating MCOOL for beef within one year of enactment.

The bill also proposes that if the trade representative fails to do so within a year of enactment, then MCOOL would automatically be reinstated for beef. 

"Transparency in labelling benefits both producers and consumers," said Thune in a release.