The Canadian federal government as well as organizations representing some of the country's beef producers warn that the decision south of the border regarding "Product of the USA" labels on meat, poultry, and eggs could disrupt supply chains.

The U.S. Department of Agriculture announced on Monday a final rule on the conditions for using voluntary "American Product" or "Made in the USA" labels, stating that they will only be allowed on meat, poultry, and egg products when derived from animals that were born, raised, slaughtered, and processed in the United States.

Agriculture Secretary Tom Vilsack said in a press release that the rule, which will take effect in 2026, will ensure that when consumers see the label, they can know that every step involved, from birth to processing, was done in America.

But Canadian Agriculture Minister Lawrence MacAulay and International Trade Minister Mary Ng said in a joint statement that they are disappointed because the rule apparently does not take into account the concerns they raised regarding the "unique and important trade relationship" between the two countries.

They stated that "the meat and livestock sectors in Canada and the United States work closely together" and that Canada intends to raise this issue during the trilateral meeting of agriculture ministers with the United States and Mexico scheduled to be held in Colorado later this month.

The rule represents a sharp change from the current policy, which allows voluntary use of these labels on products from animals imported from a foreign country and slaughtered in the United States, as well as on meat that has been imported and repackaged or processed.

Vilsack said in the press release after announcing the final rule on Monday at the National Farmers Union annual conference in Phoenix, Arizona: "Today’s announcement is a critical step toward protecting consumers and builds on the Biden-Harris administration's work to enhance trust and fairness in the market where small processors can compete."

The USDA statement explained that the final "Product of the USA" rule is supported by petitions, thousands of comments from stakeholders, and data from a nationwide consumer survey. It also said that making the claim "Product of the USA" or "Made in the United States" will remain voluntary.

The joint statement issued by MacAulay and Ng said that Canada is "carefully reviewing the final rule."

The statement said, "Our indispensable relationship allows producers, manufacturers, and consumers on both sides of the border to benefit from efficient, stable, and competitive markets while ensuring reliable supplies of high-quality products."

"Canada remains concerned about any measures that could cause disruptions in the highly integrated meat and livestock supply chains in North America."

A statement issued by the Canadian Cattlemen’s Association, which represents beef farms and feedlots, described the rule as "the toughest standard in the world."

CCA President Nathan Pini said in the statement, "It is important to address any issues that threaten or diminish cattle and beef trade between Canada and the United States."

"We are very concerned that this rule will discriminate against live cattle imports and undermine the beneficial integration of the supply chain in North America."

The rules for voluntary labeling differ from country of origin labels, known as COOL, which require companies to disclose where the animals supplying beef and pork were born, raised, and slaughtered. This requirement was repealed in 2015, following international trade disputes and a World Trade Organization ruling.