In late December 2008, Mexico banned imports of meat from 30 U.S. processing facilities, telling the USDA that sanitary issues were to blame, although some, including Senator Charles Grassley (R-Iowa), suggested that the move was in retaliation for the new country-of-origin labeling (COOL) rules that took effect September 30. Mexican officials denied any connection and reportedly lifted the embargo for 26 of the plants as of December 30. According to a news source, Mexico is the leading buyer of U.S. meat, and the suspension led to a sharp decline in
cattle and hog futures at the Chicago Mercantile Exchange. U.S. and Mexican officials were reportedly scheduled to meet January 5, 2009, to discuss meat import issues.

Meanwhile, Mexico has reportedly joined Canada before the World Trade Organization seeking consultations with the United States over the COOL regulations. The two countries are apparently most concerned about the impact on meat and livestock, which must be born, raised and slaughtered in the United States to be labeled as U.S. products. According to The Wall Street Journal, Mexico’s Economy Ministry “considers that the measure generates discrimination against Mexican products, since the U.S. consumer will prefer products labeled as originating in the U.S.” Mexican cattle exports to the United States in 2008 reportedly fell by more than half their previous levels. See The Wall Street Journal, December 18, 2008; Reuters, December 26, 2008; Associated Press, December 27, 2008; CQ Today and Pork, December 31, 2008.

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For decades, manufacturers, distributors and retailers at every link in the food chain have come to Shook, Hardy & Bacon to partner with a legal team that understands the issues they face in today's evolving food production industry. Shook attorneys work with some of the world's largest food, beverage and agribusiness companies to establish preventative measures, conduct internal audits, develop public relations strategies, and advance tort reform initiatives.

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