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Comments and Correspondence
ICGMA COMMENTS ON AUSTRALIAN COUNTRY-OF-ORIGIN LABELING PROPOSAL

July 10, 2001

The Project Manager
ANZFA
PO Box 7816
Canberra MC
ACT 2610
Australia

Dear Project Manager:

The International Council of Grocery Manufacturers Associations (ICGMA) is an international non-governmental organization officially recognized by the Codex Alimentarius Commission, the International Chamber of Commerce, and the Organization of Economic and Cooperative Development (OECD). ICGMA represents the interests of national and regional associations who collaborate with all sectors of the grocery industry and serves to facilitate harmonization of standards and policies concerned with health, safety, packaging, labeling, advertising, and marketing of foods, beverages and other consumer packaged goods.

In this context, ICGMA welcomes the opportunity to present our submission to the Australia New Zealand Food Authority in response to the request for comment on Proposal P237 – Country of Origin Labelling.

The ICGMA strongly supports Option 2 – No specific requirement in the new joint Australia New Zealand Food Standards Code to make a country of origin declaration.

An internationally accepted Codex general standard already requires country of origin labeling in cases where its omission would mislead or deceive the consumer. This requirement is appropriately focused on the objective of preventing consumer deception. Mandating country of origin labeling across the board or expanding it to include ingredients would be burdensome, impractical, and provide no additional benefit to the consumer. Country of origin labeling has no relation to public health or food safety, and conveys no useful information to the consumer on health or safety.

Expanding country of origin labeling requirements beyond the origin of the food, to reach the origin of the food’s ingredients, is particularly troublesome. Ingredients may be sourced from suppliers in different countries during different times of the year, or from multiple countries and then commingled or blended. Variations in ingredient availability as well as quality affect usage and manufacturing decisions by food companies.

Ingredient manufacturers, traders, and food processors and manufacturers would be constantly required to segregate ingredients from different countries in order to ensure proper compliance with ingredient origin labeling requirements, and to maintain a myriad of labels to correspond to every possible mix or combination of sources of ingredients. Even if this could be done as a practical matter, the compliance costs would be astronomical for foods with multiple ingredients – ICGMA understands that the cost of label changes, resulting from any more detailed country of origin labeling requirements than currently exist, would be at least $10 - $100 million for food products sold through Australian supermarkets. The range of different labels for a food product that is compositionally the same would be very confusing to the consumer.

Existing international trade rules under the WTO Agreement on Technical Barriers to Trade (TBT) prohibit technical regulations (including labeling requirements) from creating unnecessary obstacles to international trade. Such regulations may not be more restrictive than necessary to fulfill certain identified legitimate objectives, which include national security, prevention of deceptive practices or protection of human health and safety. Mandatory country of origin labeling would most likely create an unnecessary obstacle to trade with no legitimate or internationally recognized justification.

The International Council of Grocery Manufacturers Associations appreciates ANZFA’s consideration of our comments.

Sincerely,

Mari Stull
Executive Secretary

CC: AFGC