Export Controls

California’s Prop 12 Raises Questions for US Pork Industry and International Trade

California’s Farm Animal Confinement Initiative, also known as Prop 12, is set to implement new requirements regarding sow housing by July 1, 2023. While this initiative is aimed at improving animal welfare, the United States pork industry is still grappling with questions about verification, logistics, and supply. Furthermore, concerns have been raised about whether this will unintentionally create a non-tariff trade barrier for international suppliers of pork, such as Canada.

Erin Borror, an economist with the U.S. Meat Export Federation (USMEF), joined host Chip Flory on AgriTalk to discuss these concerns. Borror emphasized that foreign exporters, including Canada, would have to meet the production requirements of Prop 12. However, without proper audits and verification, there is uncertainty about where foreign producers would stand in this equation. This may require the California Department of Food and Agriculture to audit foreign farms, which would be an unprecedented and complex undertaking.

In addition, the new standards set by Prop 12 are not a requirement of the United States Department of Agriculture (USDA), making import regulations even more unclear. Questions remain about labeling of products, auditing standards, verification of paperwork, and the impact on meat currently in cold storage. As Borror notes, Prop 12 not only alters the landscape of domestic animal agriculture but also upends the norms of international trade in meat products, forcing us to confront a slew of new, complex questions.

The pork industry and international trade are in uncharted territory with Prop 12. While animal welfare is an important issue, it is crucial that the implementation of these new standards does not unintentionally create trade barriers or harm international relationships. As the industry navigates these uncertainties, it will be important to prioritize communication and collaboration between domestic and foreign producers, regulatory bodies, and trade partners.

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