Washington - Canada, which exports half its beef and cattle to the United States, is protesting a move in Congress to require meat to be labeled as domestic or imported.
The labeling requirement is intended to stimulate sales of U.S. meat and boost sagging beef prices. But Canadian officials say it would violate trading rules and have requested consultations with the Clinton administration under provisions of the North American Free Trade Agreement.
"It's an issue that would have a direct influence on the survival of a lot of meat packaging companies on both sides of the border," Canadian Ambassador Raymond Chretien said at a news conference with Sen. Rod Grams, R - MN. Chretien said the measure could raise their costs enough to push some marginal meatpackers out of business.
Canada is basing its complaint on NAFTA provisions related to trading costs.
The Senate inserted the labeling requirement in an agricultural spending bill this month. The provision is not included in the House's version of the legislation, so a House-Senate conference committee will decide whether it stays in the final bill.
Rep. Joe Skeen, who is certain to be a member of the committee, has concerns about the bill because of the possible "negative impact" on consumers, the meat industry and producers, said spokeswoman Selma Sierra. Skeen, R - NM, is chairman of the House Appropriations' agriculture subcommittee.
Lobbyists for meatpackers, food manufacturers and supermarkets have joined Canadian officials in lobbying against the provision, which is backed by livestock producers and at least one consumer group.
The Clinton administration has not taken a position.
The measure would not designate the country of origin but simply note whether the product is imported, domestic or a blend. The Agriculture Department also is supposed to do a six-month study to determine if the regulation causes retail prices to rise.
"Americans know where their T-shirts and auto parts and shoes come from, but they don't know where their food products come from that feed their families," said Sen. Tim Johnson, a South Dakota Democrat who is the measure's chief sponsor.
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