ICGMA logoglobe
home
about ICGMA
reading room
member access
contact ICGMA

Comments and Correspondence
ICGMA COMMENTS SUBMITTED TO HEALTH CANADA ON COUNTRY OF ORIGIN LABELING

March 7, 2002

Mr. Ron B. Burke
Director, Bureau of Food Regulatory International
and Interagency Affairs
Health Promotion Branch
Health Canada
HPB Bldg., Room 200
Tunney’s Pasture
Ottawa K1A OL2
Canada

Dear Mr. Burke:

The International Council of Grocery Manufacturers Associations (ICGMA) is pleased to provide input on the “Discussion Paper on Country of Origin Labeling.” (ALINORM 01/21).

ICGMA, a recognized INGO before the Codex Alimentarius Commission, represents the interests of national and regional associations who collaborate with all sectors of the consumer packaged goods industry. ICGMA promotes the harmonization of scientific standards and policies concerned with health, safety, packaging, and labeling of foods, beverages, and other consumer packaged goods. ICGMA also works to facilitate international trade in these sectors by eliminating or preventing artificial barriers to trade.

General Comments:

We believe that the Codex Committee on Food Labeling (CCFL) should not begin new work in the area of country of origin labeling, and should instead stay focused on labeling issues that promote science-based health and food safety objectives. ICGMA continues to oppose efforts to impose extraneous food labeling requirements that afford no health or safety benefits to consumers. Country of origin labeling for ingredients serves only to increase the costs of production for food producers and regulatory costs of governments—particularly those in developing countries. 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 regarding the health or safety of the product.

Comments to the “Discussion Paper on Country of Origin Labeling.” (ALINORM 01/21):

As stated previously, ICGMA supports providing “factual, verifiable, understandable and non-misleading information” relevant to the protection of consumers’ health and to ensure fair practices in food trade. For this reason, we support the existing Codex general standard that requires country of origin labeling only in cases where its omission would mislead or deceive the consumer. This requirement is appropriately focused on the objective of preventing consumer deception.

Furthermore, ICGMA believes that the “Discussion Paper on Country of Origin Labeling” is potentially violative of the World Trade Organization’s (WTO) trade agreements. Specifically, Article 2.2 of the Agreement on Technical Barriers to Trade (TBT Agreement) provides that technical regulations shall not be “prepared, adopted, or applied with a view to or with the effect of creating unnecessary obstacles to international trade.” To ensure that no unnecessary obstacles are erected, the Agreement requires that any regulations enacted “shall not be more trade-restrictive than necessary to fulfill a legitimate objective.”

Country of origin labeling is an obstacle to trade because the enormous compliance and regulatory costs will force many producers, especially those in developing nations, out of the market. It is also unnecessary because it is something that could be achieved in a less trade-restrictive manner, for instance through the establishment of a voluntary system for labeling. Additionally, country of origin labeling does not fulfill a legitimate objective because it does nothing to advance the health and safety of consumer products. Country of origin labeling requirements do not fulfill Codex’s mandate of “protecting the health of the consumer and ensuring fair practices in the food trade.”

Moreover, work on international harmonization of rules of origin has been underway for several years in the WTO, with technical assistance from the World Customs Organization (WCO) (formerly the Customs Cooperation Council). This work was mandated by the WTO Agreement on Rules of Origin that was concluded in 1994 as part of the Uruguay Round of Multilateral Trade Negotiations. ICGMA continues to raise concerns that setting Codex standards based on political pressures will duplicate, and even contradict, the work of the WTO and WCO.

Finally, ICGMA remains concerned about the impact of country of origin labeling requirements on developing nations. Developing countries are oftentimes left out of the decision-making process even though they are the hardest hit by the costs imposed by new regulations. Many developing nations will not be able to absorb the costs of these new labeling requirements which fail to offer any safety or health benefits to consumers. As a result, they will be forced out of the international market and suffer significant economic losses.

The costs of this labeling scheme will be most onerous for small processors. With the significant additional costs of country of origin labeling, these companies will no longer be able to compete in the global marketplace and will be forced out of business, seriously impairing free trade and consumer choice.

In conclusion, for the reasons discussed above, ICGMA strongly urges CCFL to refrain from beginning new work in the area of country of origin labeling. Instead, CCFL should remain focused on labeling issues that promote science-based health and food safety objectives.

* * *

ICGMA appreciates the opportunity to comment on this very important issue. Should you have any questions or need additional information on our comments, please do not hesitate to contact me.

Sincerely,

Mari Stull
Executive Secretariat
International Council of Grocery Manufacturers Associations

cc. FAO Secretariat
C. Taylor-Lewis
FCPMC