Regulatory Hot Topics – July 2020 Edition

U.S-Mexico-Canada (USMCA) Trade Agreement

The U.S-Mexico-Canada (USMCA) trade agreement went into force on July 1 and replaces the North American Free Trade Agreement (NAFTA), that was in place since 1994.  The new agreement retains most of NAFTA’s chapters but makes notable changes to provisions for agriculture products.  The former NAFTA certificate is no longer required for customs; however, a country of origin document will still be provided.

USMCA modernizes NAFTA on other areas such as auto and dairy products, government procurement, intellectual property rights, and labor and environment.  It addresses new issues, such as digital trade, state-owned enterprises, and currency misalignment.

FDA to Release New Era of Smarter Food Safety

The FDA is currently developing a Strategic Blueprint to create a more digital, traceable, and safer food system. It is expected this blueprint will be released in the coming weeks. The blueprint is said to be FSMA-based and will encompass how the FDA plans to approach the safety and security of the food supply, both in the normal course of events and during times of crisis.

Sodium Reduction Targets in House Bill

The House Agriculture Appropriations Subcommittee recently approved a bill that included language on FDA sodium reduction targets.  It calls on the FDA to publish an updated draft of the short-term targets and to provide for a 30-day comment period prior to finalization. The draft sodium targets were originally published in June 2016 by the FDA.

Prop 65 – Multiple Updates

There are three major updates regarding California’s Proposition 65.  First, the addition of safe harbor levels or maximum allowable levels (MADLs) for the chemical chlorpyrifos. Second, a District Court entered a permanent injunction barring the enforcement against the cancer warning requirements for glyphosate.  And third, a proposed adoption to establish a naturally occurring level of lead in candies containing chili and/or tamarind at 0.02 parts per million (ppm). Written comments to the proposed rule are due by August 18, 2020.

EU Continues to Address Pesticides

The European Union (EU) announced the phaseout of glyphosate and lowered the Maximum Residue Level (MRL) for chlorpyrifos to the lowest detectible level with the intent not to renew its use. In addition, the European Commission announced a plan to reduce pesticide use and sales of antimicrobials, 50 percent by 2030. The plan still needs to be approved by the European Parliament.

USDA and Taiwan Organic Equivalency Agreement

On May 30, an organic equivalency agreement between the U.S. and Taiwan went into effect. The arrangement allows organic products certified in the U.S. or Taiwan to be sold as organic in either market, eliminating the need to have separate certifications. The U.S. currently maintains organic equivalency arrangements with Canada, the European Union, Japan, Korea, and Switzerland.

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