*EPF207 07/15/2003
House Approves $17,500 Million FY04 Agriculture Spending Bill
(Eliminates funding for controversial country-of-origin program) (500)

By Kathryn McConnell
Washington File Staff Writer

Washington -- The House of Representatives has approved a $17,500 million spending bill for the U.S. Department of Agriculture (USDA) and Food and Drug Administration (FDA), removing from the measure funding to implement a country-of-origin labeling program for beef, pork and lamb imports contained in the 2002 Farm Bill.

House members passed the bill, for the fiscal year beginning October 1 (FY04), July 14 by 374-64.

The refusal by 208-193 to pay for the controversial meat and meat product labeling program disappointed farm groups who said country-of origin-labeling would better inform Americans about where their food comes from. Opponents of the labeling program said it would be costly for producers and food companies, leading eventually to higher prices for consumers.

The mandatory labeling requirements in the Farm Bill are scheduled to take effect in the fall of 2004.

By withholding funding, food industry opponents hope to delay implementation of the rules until at least 2005. Labeling requirements for fish and produce would still take effect next year, however, according to news reports.

The meat labeling requirement is more popular in the Senate, where some members view labeling as a food safety issue and argue it would be irresponsible to reverse course in light of the recent finding of a cow infected with mad cow disease in Canada.

Country-of-origin labeling has taken on another level of importance, supporters say, because Japan has set a deadline of September 1 for the United States to label its exports. Following the discovery of the case of mad cow disease in Canada, Japan wants to make sure no Canadian beef finds into the country via the United States, say news reports.

Some senators also say a new labeling law would also be an important marketing tool for U.S. meat producers.

A Senate Appropriations subcommittee is expected to take up its version of an agriculture funding bill within a few days of the House vote and is expected to include funding for the labeling program, according to news reports. After the Senate passes its version of the bill, both chambers must then negotiate and pass a final version before sending it to the president for signature or veto.

Eleven percent of the beef and 5 percent of the pork consumed in the United States is imported, according to news reports.

The House-passed funding bill would provide $2,900 million more (4 percent) spending than the than in the previous year but $136 million less (1 percent) than the administration's request.

The bill would provide 17 percent less than the previous year's level for foreign assistance and 6 percent less for commodity loan and subsidy programs.

The House defeated an amendment that would have reduced the bill's funding 1 percent across the board.

The FDA is funded through USDA even though it is part of the Department of Health and Human Services.

(The Washington File is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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