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U.S. Comments on Draft Japan Wagyu Labeling Guidelines:
The Government of the United States of America appreciates the opportunity provided by the Ministry of Agriculture, Forestry, and Fisheries to comment on its draft ‘Labeling Guidelines for Distinctive Meats such as Wagyu.’ The United States also appreciates the Ministry’s efforts to keep us informed throughout the development of the draft guideline.
We understand that the draft guidelines are the work and result of a Study Panel on Meat Labeling that MAFF requested and that they cover both beef and pork labeling issues. We also understand that these guidelines were published for public comment on January 11, 2007.
With respect to beef, the United States has a number of concerns regarding the purpose of the draft guideline and its impact on future trade. We have communicated these concerns to MAFF on several occasions including in the context of Japan’s recent Trade Policy Review under the World Trade Organization.
One function of the draft guideline is to prevent imported beef from being labeled as ‘Wagyu’. In particular, Section VI, 1 (1) ((2)) requires cattle bearing the Wagyu label must be born and raised in Japan. We believe that beef that meets the requirements under the draft guideline and that is raised outside of Japan can also be termed Wagyu. The genetic stock of livestock breeds are routinely traded and produced throughout the world. The report of the Study Panel on Meat Labeling acknowledges that cattle of the Wagyu breed are being bred in other countries such as Australia and the United States. The Panel’s report also provided information on how the Berkshire breed of pig originated in England but is now being grown by farmers in Japan, the United States, and other countries. Thus, Japanese farmers are also engaging in the common practice of raising livestock breeds that were developed in other countries.
When farmers undertake the effort to raise these specialized breeds of livestock, they frequently organize breed registries to preserve the integrity of their stocks and to ensure consumers of the authenticity of their production of these breeds. We believe that these efforts can provide sufficient assurances to consumers regarding the genetics of the meat being purchased, regardless of the country in which the livestock was produced.
By preventing Wagyu beef not grown in Japan from being labeled as Wagyu, the provision would provide a strong disincentive for the future foreign production of Wagyu because it effectively excludes Japan as a potential market. Purebred Wagyu genetics exist outside of Japan and should be allowed to be freely traded as Wagyu in Japan. The concerns addressed by the study group, including consumer misunderstanding of the term Wagyu, are easily addressed by other existing regulations, such as country of origin labeling. Accordingly, the United States respectfully requests that MAFF not include Section VI, 1 (1) ((2)) in its final published guideline. In addition, we are concerned that Section VI, 1 (2) ((1)), dealing with breed registration, could, if improperly administered, also present a potential trade problem. The United States also requests that MAFF consider the future inclusion of foreign Waygu breed registries under this provision.
We urge, in particular, that Japan give special consideration to the following questions:
・ What legitimate objective would be fulfilled by implementation of the proposed regulation? If the objective is to prevent deceptive practices or consumer confusion, it is not clear to the United States that labeling non-Japanese beef as “Wagyu” would be deceptive or confusing, since the term Wagyu refers to the animals’ genetics rather than to geographic origin. We note as well that Japan already has in place laws requiring beef sold in Japan to identify the country of origin, thus reducing further any prospect of consumer confusion.
・ Has Japan considered less trade restrictive alternatives? If so, what were they and what was Japan’s rationale for rejecting them?
・ Does the proposed measure to restrict the use of the term “Wagyu” to domestically-produced beef present the possibility that imported beef may be subject to treatment less favorable than that accorded to Japanese-raised beef?
Conclusion
In summary, the characteristics of Wagyu beef, such as meat quality, texture, and flavor, which give Wagyu its product value, are derived from specific animal genetics. Wagyu genetics are not constrained by geography nor are otherwise limited to Japan. Japan already has in place laws that require labels on beef sold in Japan to show country of origin. Any measure that limits the labeling of Wagyu beef to animals raised in Japan would provide strong disincentive for the future foreign production of Wagyu and negatively impact trade. The United States respectfully requests that MAFF not include Section VI, 1 (1) ((2) in its final published guideline. We also ask that MAFF consider the inclusion of foreign Waygu breed registries under Section VI, 1 (2) ((1)).
(02/13/07)
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