New research from Kansas State University suggests that USDA’s controversial country of origin labeling rule will have a negative economic impact, because it increases compliance costs without quantifiable benefits.
Under the rule, meat product labels inform customers of where the animal was born, raised and slaughtered. USDA assigned the research, which found no increase of demand for meat products labeled under the rule.
Instead, researchers found that higher retail prices and lower supplies under USDA’s rule would actually cost American consumers more than $6 billion in the next decade on beef purchases, and over $2 billion in that same time on their purchases of pork.
The World Trade Organization is currently scrutinizing USDA’s rule, to determine if it complies with American obligations as a WTO member. Its decision is expected later this month.