Canada is asking the WTO to rule against an American food-labeling law

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by CLIFFORD KRAUSS, NYT.com

Ratcheting up a trade dispute with the Obama administration, Canada is asking the World Trade Organization to rule against an American food-labeling law that it claims is helping to destroy much of its hog-farming industry.

The dispute concerns an American rule requiring that food products be labeled by country of origin. The Obama administration denies that the labeling policy is an act of protectionism, even though it is driving American pork producers to decrease purchases of Canadian hogs, traditionally about 7 percent of the pork consumed in the United States.

The reduction in imports has brought some short-term relief to American hog farmers suffering from high feed prices and low domestic and export sales. The industry says sales have been hurt by unfounded consumer concerns about catching swine flu from eating pork.

The new regulations require American companies to track and label the country of origin of meats and produce at all stages of production and sale, except at restaurants. Cattle producers were instrumental in getting the rules passed, feeling it would give them a competitive edge over foreign producers.

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Canada Seeks Redress on Food-Labeling Law



Piglets at a small farm near Calgary, Alberta. Pig farmers on both sides of the border have also had to cope with high feed prices and unfounded fears about catching swine flu from eating pork. Todd Korol/Reuters