March 2, 2009
Mexico may lock down Texas border over COOL
The US Country-of-Origin Labelling (COOL) rule dispute may have reached a new level as Texan industry officials reported that their Mexican counterparts have threatened to lock down the border.
Packers and retailers are asked to voluntarily apply COOL, which will take effect March 16.
Agriculture Secretary Thomas Vilsack warned that non-compliance might lead him to modify the rules for multiple countries-of-origin. Critics said the modification is a lengthy process that could disrupt the market.
The beef industry is worried because COOL took six years to hammer out.
Buyers of Canadian and Canadian cattle are upset about the request, and their worries are deepened by Mexico's border threat.
Jason Skaggs, an Austin official with the Fort Worth-based Texas and Southwestern Cattle Raisers Association,
Skaggs said many of the association's members import Mexican steers, whose prices have already been discounted and might get hurt further by Vilsack's request.
Mexico is Texas' largest trading partner and bought US$1.4 billion worth of US beef products last year, Skaggs said.
