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Comments and Correspondence
ICGMA COMMENTS SUBMITTED TO HEALTH CANADA ON THE GENERAL STANDARD FOR THE LABELING OF PREPACKAGED FOODS: QUANTITATIVE DECLARATION OF INGREDIENTS (QUID)

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 “Proposed Draft Amendment to the General Standard for the Labeling of Prepackaged Foods: Quantitative Declaration of Ingredients (QUID)” (Alinorm 01/22A).

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:

ICGMA does not support mandatory requirements for quantitative declarations of ingredients. We continue to oppose all efforts to impose extraneous food labeling requirements that afford no health or safety benefit to consumers. Product composition is sufficiently declared through full ingredient labeling in order of predominance by weight. Mandatory percentage ingredient labeling as proposed requires the disclosure of proprietary information, e.g., recipes protected by trademark, distracts from material information related to product safety and nutritional content, and has the potential to confuse and mislead consumers who have no numerical concept of the appropriate ingredient percentage in packaged food products.

Comments to the “Proposed Draft Amendment to the General Standard for the Labeling of Prepackaged Foods: Quantitative Declaration of Ingredients (QUID)” (Alinorm 01/22A):

As stated previously, mandatory percentage ingredient labeling as proposed requires the disclosure of proprietary information, distracts from material information related to product safety and nutritional content, and has the potential to confuse and mislead consumers. The technical practicalities of accurate representation impose a significant economic burden on the food industry while simultaneously imposing onerous implementation and enforcement burdens on regulatory authorities. These labeling requirements will effectively reduce selection for consumers and market competition without increasing safety quality or consumer confidence.

Furthermore, ICGMA believes that the “Proposed Draft Amendment to the General Standard for the Labeling of Prepackaged Foods: Quantitative Declaration of Ingredients ” 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.”

Mandatory percentage ingredient labeling as proposed 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 unnecessary because it is something that could be achieved in a less trade-restrictive manner - such as through the establishment of a voluntary system for labeling. Moreover, the proposed labeling does not fulfill a legitimate objective because it does nothing to advance the health and safety of consumers. Mandatory percentage ingredient labeling requirements do not fulfill Codex’s mandate of “protecting the health of the consumer and ensuring fair practices in the food trade.”

Finally, ICGMA remains concerned about the impact of mandatory percentage ingredient labeling requirements on developing nations and small businesses. All too often, developing countries are excluded from the decision-making process even though they are the hardest hit by the costs imposed by new regulations. Many developing countries will be severely harmed by the economic burdens imposed by these new regulations. As a result, they will be forced out of the international market causing significant economic losses, decreased competition and reduced consumer choice.

The costs of this labeling scheme will be most onerous for small processors. With the significant costs associated with the proposed labeling, smaller 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 outlined above, ICGMA believes that Codex Committee on Food Labeling (CCFL) should not begin new work in this area. Instead, CCFL should remain focused on science based horizontal standards that will achieve Codex mission: to protect the health of consumers and facilitate fair practices in food trade.

* * *

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