The Ministry of Economy condemns the US labeling rule

Government of Mexico, through The Ministry of Economy (SE), rejected the recent announcement by the United States Department of Agriculture (USDA) regarding the completion of the labeling rule action “American product”.

The agency said through a statement that the restrictions imposed on the use of the label “Product of the United States” Products derived from animals born, raised, slaughtered, and processed exclusively in the United States discriminate against them Mexican producers.

Furthermore, he warned that barriers could be created Production chains Binationalism, in particular, refers to Mexican exports of live cattle, beef and their derivatives, which amount to three billion dollars in 2023.

“This measure threatens to have devastating effects on food chains, as well as logistical complications and additional costs, which will ultimately end up being paid by Mexican producers, but above all by American consumers,” stressed the agency headed by Raquel Buenrostro.

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“Because of the above, this measure is contrary to the principles of economic integration underlying the Treaty between Mexico, the United States and Canada (T-MEC), and is counterproductive at a time when the productive chain between the three North American countries is suffering.” He said.

The Ministry of Economy urged the US authorities to reconsider this rule and intensify dialogue with its Mexican counterpart to avoid negative repercussions on the economy. Bilateral trade.

According to the Special Envoy, Mexico affirms its firm commitment to constructive dialogue as the preferred path to resolving differences with its main trading partner.

“However, in order to protect the rights of our producers and maintain a fair and non-discriminatory trade flow, a careful analysis must be conducted of the potential use of mechanisms available at both the T-MEC and the WTO with the aim of ensuring US compliance and obligations with regard to technical barriers to trade.”

the Tagged Provenance were recurring themes in our business relationship, SE said.

“Since 2002, the World Trade Organization has declared an action of this kind promoted by the United States unacceptable. “At that time, the final decision estimated the impact on Mexico at $227 million,” the agency said.

Years later, the United States decided to withdraw this measure in order to comply with the ruling and avoid imposing costly retaliatory measures.”

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