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R E S O L U T I O N
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WHEREAS, The Farm Security and Rural Investment Act of 2002, |
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more commonly known as the 2002 Farm Bill, included provisions |
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requiring country of origin labeling (COOL) for beef, lamb, pork, |
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fish, perishable agricultural commodities, and peanuts; and |
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WHEREAS, In response to widespread controversy, the United |
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States Congress agreed to delay full mandatory implementation of |
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COOL; although labeling requirements under a final rule are taking |
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effect on March 16, 2009, agriculture secretary Tom Vilsack has |
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called for voluntary compliance under stricter guidelines, warning |
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of a possible tightening of regulations at a later time; and |
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WHEREAS, The United States Department of Agriculture has |
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estimated that incremental costs of compliance with the final rule |
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will reach $2.6 billion in the first year for growers, producers, |
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processors, wholesalers, and retailers; in the 10th year after |
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implementation, the estimated cost to the United States economy |
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would be more than $211 million in higher food prices and reduced |
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food production; meanwhile, the USDA has concluded that economic |
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benefits associated with COOL implementation are likely to be |
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small; and |
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WHEREAS, Current evidence does not suggest that consumers are |
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willing to pay a premium price for food items bearing the United |
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States origin label, or that United States producers will be able to |
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recoup costs associated with COOL compliance through higher prices; |
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and |
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WHEREAS, COOL is a marketing program, not a food safety |
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measure, as evidenced by the fact that it is administered by the |
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Agricultural Marketing Service (AMS) of the USDA rather than its |
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Food Safety and Inspection Service or Animal and Plant Health |
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Inspection Service; and |
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WHEREAS, COOL regulations are extremely burdensome for the |
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cattle industry; cattle are not considered a covered commodity |
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under COOL regulations, but producers are obligated to provide |
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origin information in order for retailers to verify the origin of |
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meat; cattle are often bought and sold several times and move |
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through a complex and diverse set of stocker and feedlot production |
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systems involving a high degree of sorting and commingling, which |
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increases the difficulty of tracking domestic and imported cattle; |
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and |
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WHEREAS, Mexico and Canada, the top two export markets for |
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U.S. beef, have both filed complaints against COOL provisions with |
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the World Trade Organization; in December 2008, Mexico briefly |
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banned imports from 30 U.S. meat plants in a move widely considered |
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to be a protest against COOL, which drove cattle futures sharply |
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lower at the Chicago Mercantile Exchange; and |
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WHEREAS, Texas leads the nation in cattle production; the |
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industry contributes as much as $16 billion annually to the state |
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economy, and it is vitally important that normal trade relations |
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continue with key beef export markets; the COOL provisions are |
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harmful both to trade relations and to the overall economic |
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viability of the cattle industry as well as to consumers, who can |
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expect to see prices rise as a result of higher production costs; |
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now, therefore, be it |
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RESOLVED, That the House of Representatives of the 81st Texas |
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Legislature hereby respectfully urge the United States Congress to |
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repeal mandatory country of origin labeling provisions from federal |
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law as soon as practicable; and, be it further |
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RESOLVED, That the chief clerk of the Texas House of |
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Representatives forward official copies of this resolution to the |
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president of the United States, to the speaker of the house of |
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representatives and the president of the senate of the United |
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States Congress, to the secretary of agriculture, and to all the |
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members of the Texas delegation to the Congress with the request |
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that this resolution be officially entered in the Congressional |
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Record as a memorial to the Congress of the United States of |
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America. |