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Much ado about nothing?

Agriculture.com Staff 01/05/2009 @ 6:41am

The meat markets were rattled this past week when Mexico announced it would de-list 30 packing plants from the U.S.

According to Mexico, this was in regard to sanitary issues and not in response to Country of Origin Labeling (COOL) which the U.S. passed on October 1. However, most analysts and traders likely believe last week's response by Mexico was in essence a signal that they are not in favor of the U.S. COOL labeling passage.

Since Mexico's announcement to de-list 30 plants, they have rescinded or re-listed 20 plants with another 5 expected.

As with any changes, there is initial reaction. Then over time, the acceptance of change becomes more relative, and in cases of dispute, the two sides generally come together. Mexico has now lifted the suspension on 20 plants and is said to be negotiating to lift another 5.

It is our belief that, over the years, strong ties with Mexico have helped to facilitate significant business for both countries. We feel longer-term, this will continue to be the case. While discrepancies or disagreements will occur, these will generally get worked out. Therefore, look for the bigger picture to remain friendly with relations and trade.

If you have comments or questions, call Top Farmer at 1-800-TOP-FARM ext. 129 and ask for Bryan Doherty.

The meat markets were rattled this past week when Mexico announced it would de-list 30 packing plants from the U.S.

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