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Food & Agriculture Outlook 2020 - Agribusiness | IEG Policy - IHS Markit
Agribusiness | IEG Policy

Food & Agriculture
Outlook 2020
Food & Agriculture Outlook 2020 - Agribusiness | IEG Policy - IHS Markit
Contents
                                                                        3       Welcome to our Food & Agriculture Outlook for 2020

                                                                        US FOOD POLICY ❱

                                                                        4  Increased enforcement, produce safety expected to dominate
                                                                           FSMA in 2020
                                                                        7 All eyes on FDA as food and supplement makers await regulatory
                                                                           pathway for CBD
                                                                        10 FDA to implement updated Nutrition Facts, define ‘healthy,’ tackle ‘natural’

                                                                        EUROPEAN FOOD POLICY ❱

                                                                        13 Airbus tariffs on agri-food products: a new chapter in EU-US trade disputes
                                                                        16 Food labelling under pressure
                                                                        19 A busy year for novel foods

                                                                         US AGRICULTURE POLICY ❱

                                                                        22 EPA’s moves continue to be a focus for biofuels sector
                                                                        25 Hazy outlook for hemp in 2020
                                                                        28 The elections and what lies ahead

                                                                         EUROPEAN AGRICULTURE POLICY ❱

                                                                        32 Under pressure, but still fighting: The World Trade Organization and
                                                                           global farm trade
                                                                        35 How the glyphosate debate is shaping agrifood policy and practice
                                                                        38 Post-2021 Common Agricultural Policy: Towards further delays in the
                                                                           reform process?
                                                                        41 New European Commission banks early success on its Green Deal
                                                                        44 EU-Mercosur deal to fuel further debate about sustainable trade

                  Editor: US Food Policy                                         Analyst: US Food Policy                                          Consultant: European Agricultural Policy
                  Joan Murphy                                                    JR Pegg                                                          Chris Horseman (contributor)
                  Email: joan.murphy@ihsmarkit.com                               Email: jonathan.pegg@ihsmarkit.com

                  Editor: European Food Law                                      Analyst: US Food Policy                                          Analyst: European Food Law
                  Peter Rixon                                                    Margarita Raycheva                                               Sara Lewis (contributor)
                  Email: peter.rixon@ihsmarkit.com                               Email: margarita.raycheva@ihsmarkit.com

                  Analyst: US Agricultural Policy                                Analyst: US Agricultural Policy
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Welcome to our Food & Agriculture
Outlook for 2020
Europe has been embattled by trade disputes that will continue to be felt throughout 2020,
whilst CAP negotiations continue and more member states work out how to rid their systems
of glyphosate.

The Airbus subsidy dispute shook up the European agrifood sector in 2019 and the after-effects will be felt throughout 2020. The WTO
gave the green light in April 2019 to the US to impose retaliatory tariffs on the EU over the awarding by the Europeans of subsidies to
Airbus, which had upset US competitors such as Boeing.

The US administration began imposing an additional 25% tariffs on a wide range of EU agri-food imports soon after the WTO ruling.
The US and the EU are likely to enter further into trade disputes in 2020 as the US has taken exception to France’s digital services tax
and threatened, at the end of 2019, to impose additional tariffs on agrifood produce from France.

Negotiations around the reform of the Common Agricultural Policy (CAP) will continue throughout 2020, probably further facing delays
with uncertainty around Brexit and stalled budget negotiations stalling the timetable. Meanwhile, the Commission has introduced a new
growth strategy, called the Green Deal, with a special focus on sustainability.

Food labelling will continue to be an important development to watch in Europe throughout 2020 as companies look at different ways
of providing the information other than through traditional labels on the products themselves.

An exciting year is also expected for novel foods, particularly in the field of cannabidiol products, insects and laboratory produced meat.

Manufacturers of glyphosate-based products can only expect an ever greater movement against the herbicide with member states
lining up to ban the product through phases over the coming years.

US regulators will need to wrestle with hemp and cannabis regulation, new labeling rules that
come into play this year and the aftermath of leafy greens outbreaks – all with the backdrop of
the Trump administration’s aggressive trade stance and a very light hand when it comes to new
regulations in the run-up to a presidential election.

Expect increasing enforcement of the Food Safety Modernization Act after FDA allowed a phase-in of some of the requirements for US
and foreign suppliers. And all eyes will be on the produce industry as it struggles to prevent future romaine outbreaks in California
and Arizona, while FDA continues tinkering with ag water standards.

USDA did roll out the much-anticipated hemp rule under the 2018 Farm Bill, but it did not quell concerns from those who think the
testing and sampling protocols are too stringent.

And will there be a legal pathway for cannabis as an ingredient in food and supplements? Another agency has said it will need three-to-
five years to write that regulation, much to the dismay of industry and vocal supporters in Congress who are anxious for a legal pathway.
Legislation may force the government’s hand.

Finally, the food industry will be eager for some regulations this year, particularly ones on labeling that define “healthy” and perhaps even
“natural.” The dairy industry is hoping 2020 will be the year FDA takes a stand on the rising number of plant-based dairy companies using
dairy terms on labels.

Of course, the looming presidential elections will play a supporting role in Washington, DC. this year, whether in forging a partisan agenda
in Congress, debating a biofuel policy, or as the Trump administration courts the farm vote.

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US FOOD POLICY ❱

Increased enforcement, produce safety
expected to dominate FSMA in 2020
by Joan Murphy

With the Food Safety Modernization Act (FSMA) rules largely in place, FDA has left for 2020 other
decisions and experts predict companies will see FDA’s generous “educate before regulate” mantra
transition to full-blown enforcement.

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In 2019, FDA rolled out the FSMA               One signal of that change came when FDA             While shifts in
Intentional Adulteration program and           created an import alert to detain human
released the much-delayed laboratory           and animal foods that do not comply with
                                                                                                   enforcement priorities
accreditation proposal for food testing.       FSVP, which requires importers to perform           may not reach the front
On the to-do list for 2020, the agency still   risk-based supplier verification activities.        page, the produce industry
needs to tackle the FSMA farm definition       While only one company is named on the
and clarify written assurances in the          import alert’s red list, FDA is likely to target
                                                                                                   is in the unenviable
supply chain to give the regulatory            more companies that fail to make any                position of struggling to
community more transparency of what            effort to comply with the regulations,              contain the damage from
to expect.                                     he said.
                                                                                                   the rolling romaine lettuce
But two issues garner the most attention       FDA also delivered the first warning letter         recalls and outbreaks...
from experts: FDA’s anticipated move to        in July to a tahini importer for not
ramp up enforcement of FSMA and the            complying with FSVP as a result of a
vexing outbreaks caused by E. coli on          Salmonella outbreak that led to an FSVP
romaine lettuce.                               inspection. Companies are being forced to           2022 at the earliest after industry questioned
                                               look back through the entire supply chain           the practicality of FDA’s approach.
An FDA official said the “educate before you   to make sure they comply and do not
regulate” approach can be credited for the     become targets of class action lawsuits,            The produce industry has named task
high FSMA compliance rates when                Levy said.                                          forces, funded research and embarked on
investigators check plants for food safety                                                         geographically based labeling, all tactics
plans and incorporating process controls.      Industry should brace for increased                 to respond to the growing number of
                                               inspection, another expert noted. In 2020,          outbreaks from romaine grown in Salinas,
According to the Food Marketing Institute      anticipate an increase in Form FDA 483s, as         Calif. and Yuma, Ariz. And in December, FDA
(FMI), a trade group that represents           well as warning letters, said Allen Sayler,         announced it was investigating three
retailers, FSMA compliance has gone            senior director of food consulting services         separate outbreaks.
smoothly for the most part throughout the      at EAS Consulting. An increase in foreign
supply chain as different sized companies      food manufacturer inspections will likely           Sayler suggested the outbreaks may
come under the nearly nine-year-old law.       spur more follow-up enforcement and                 prompt FDA to revise the enforcement
The group points to the unprecedented          more “holds,” inspections, and testing of           timeline to move toward full
outreach and education during inspections      imported foods at the US ports of entry.            implementation of the FSMA Produce
as reasons for the smooth transition.                                                              Safety Rule.
                                               What is FDA finding during inspections?
“What we’re seeing now is a shift,” said       An FDA official said in December the top            But he suggested sweeping changes may
Hilary Thesmar, FMI’s chief food and           citations in warning letters for human food         be tempered in 2020.
product officer and senior vice president of   companies are not from failing to identify
food safety programs. An FDA official          hazards, but pest control, sanitation, and          “Since the Produce Safety regulation was
signaled in October the “educate before        other lapses in meeting Current Good                one of the most politically sensitive parts of
you regulate” mode is going to come to an      Manufacturing Practices. However,                   FSMA, with 2020 being an election year, it
end, Thesmar hinted at a recent Food and       investigators are seeing animal food                is possible FDA may keep its enforcement
Drug Law Institute (FDLI) meeting. The         companies struggle with getting the right           powder dry in this area, unless there is
number of warning letters are starting to      hazard analysis and prerequisite programs           another romaine lettuce-like problem,”
tick up and FDA is shifting the types of       under FSMA, the official said.                      he said.
inspections it conducts, she said.
                                               Romaine outbreaks                                   FDA just began a yearlong sampling
Enforcement of the Foreign Supplier            While shifts in enforcement priorities may          assignment in November to test romaine
Verification Program (FSVP) regulations is     not reach the front page, the produce               prior to processing for Salmonella and
having an effect, “at least to the extent      industry is in the unenviable position of           pathogenic E. coli. The sampling data will
that some importers are asking                 struggling to contain the damage from the           increase frequency during March/April and
consultants for help,” said Charles Breen,     rolling romaine lettuce recalls and                 October/November, the transition periods
a FSMA advisor at EAS Consulting. “It’s        outbreaks, which have put a spotlight on            between regions of California and Arizona
not always FDA that’s driving importers to     the FSMA Produce Safety Rule.                       that have caused the most illnesses.
seek advice, but big box retailers are
demanding FSVP details as a condition          The final rule went into effect in 2016, but        Breen said the agency is “buying time with
of purchase.”                                  FDA put off inspections for the first-ever          ag water” as it gathers better data to
                                               produce safety regulation until spring 2019         establish standards, and he predicted
With FSVP, clients are seeing a change in      to allow time for more training and                 further delays in enforcement are possible
stepped-up enforcement, agreed Mark            technical assistance. Some key provisions           if FDA can’t get good data.
Levy, partner, Eckert Seamans Cherin &         have been delayed, including one of the
Mellott, who also spoke at a December          most important regulations for produce              As for romaine, Breen said he sees
FDLI meeting.                                  safety – agricultural water testing – until         parallels with FDA’s struggle to deal with

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Breen suggested FDA priorities such as the       agency said it won’t plan to conduct
                                                  smarter food safety initiative, lab              routine inspection until March 2020.
                                                  accreditation, and farm inspections will
                                                  likely have a high profile in 2020.              High-risk foods
                                                                                                   Another looming FSMA regulation may
                                                  Lab rule, Intentional Adulteration               throw all sectors of the food industry into a
                                                  One of the last major regulations required       food fight in 2020.
                                                  under FSMA, FDA proposed a rule Nov. 4 that
                                                  would establish a program that requires          A court settlement reached between FDA
                                                  food testing by accredited laboratories and      and consumer groups dictate the agency
                                                  develop model standards that laboratories        must designate “high-risk” foods and
                                                  must meet to be accredited.                      propose special recordkeeping requirements
                                                                                                   for facilities that handle them by Sept. 8,
                                                  Required by 2013, the delayed rule caused        2020. FDA also agreed to publish the final
                                                  two consumer groups to sue the agency            rule and post the list of high-risk foods on
                                                  in August, saying FDA was putting                its website by Nov. 7, 2022.
                                                  consumers at risk by not establishing
                                                  a comprehensive food testing program             Under FSMA, FDA was required to designate
                                                  years ago.                                       high-risk foods by January 2012 and
                                                                                                   propose recordkeeping requirements for
repeated outbreaks from raw sprouts,              Acheson said he expects “a little push back      facilities that handle those foods by
which led to a specific set of regulations        on the recent lab accreditation reg around       January 2013, all designed to speed
for producing sprouts.                            sharing testing data with FDA.”                  traceability in the likelihood of an outbreak.

“If the romaine outbreak investigations           With comments due March 2020, Sayler             But drawing the line for what’s in or out of
develop data to show there are special            predicted the final rule will not likely         the high-risk list, will not be an easy task
considerations not addressed by the Safer         surface until 2021.                              for FDA and any approach it uses will be
Produce Rule, it could eventually lead to a                                                        heavily scrutinized, judging by comments
romaine rule,” he said. “But since I am           “Since this will have FDA venturing into an      filed on FDA’s 2014 draft model that ranked
speculating, my best guess is FDA will try        area that they have not regulated in the         foods or food categories based on total
to avoid commodity-specific rules if a            past, i.e. private food testing labs, we         risk scores.
more general regulation can improve               anticipate that unless there is a ‘trigger’
public health.”                                   during 2020 related to food lab mistakes         Finally, the change in leadership at FDA
                                                  resulting in consumer illness or injury or       will likely have an impact on the agenda
David Acheson, founder of The Acheson             significant pressure by consumer groups or       in 2020.
Group (TAG), suggested 2020 may be the            Congress, with public meetings and FDA’s
year for a regulation related to the              need to digest public comments after the         One expert predicted that even though
traceability requirements for FSMA pushed         March 2020 deadline, it could be 2021            more enforcement is expected in
along by the recent produce outbreaks.            before this proposed regulation/rule is          2020, some of that may depend on
                                                  published in final form,” he said.               newly confirmed FDA Commissioner
“We have to be able to connect the dots                                                            Stephen Hahn.
faster from consumer to grower and all            The agency also may hold public meetings
points in between,” Acheson said in a             to allow more feedback on the measure,           “With the confirmation of Dr. Stephen Hahn
recent TAG blog. “The technology is there,        he added.                                        as the new FDA Commissioner and his
the need is there, the pain is there – but                                                         strong educational and work history in the
maybe the willingness to step up and pay          “It is also likely to take FDA at least a year   human medical area, it is likely that he and
the price is not there – or is it now?”           after publication of the final rule to           his supporting staff will focus most of their
                                                  establish the internal system to implement       energy on the medical issues impacting
Thomas Gremillion, food policy director of        and enforce the food laboratory                  public health such as vaping, the opioid
the Consumer Federation of America (CFA),         accreditation final rule or regulation. We do    crisis, new drug approvals, drug
said consumer groups see the ag water             not anticipate FDA being in a position to        compounding, drug availability, pricing and
standards as a top priority, so that issue is     initiate the private food laboratory             their supply chains,” Sayler said.
unlikely to fade from their agenda in 2020.       accreditation and certification program
                                                  until late 2021 or sometime in 2022 at the       “However, there will be continued pressure
“I would put development and                      earliest,” Sayler said.                          on FDA from consumer groups and
implementation of ag water standards to                                                            Congress to move forward with full
the list of big FSMA issues to come. I also       Under another FSMA requirement, large            enforcement of the Food Safety
wouldn’t be surprised if we saw some              companies needed to comply with the first        Modernization Act (FSMA) of 2011 and its
legislative tweaks in 2020 that give FDA          deadline of the Intentional Adulteration         seven (7) regulations.”
better authority to require more                  rule in July 2019. And while FDA finishes
traceability,” he said.                           rolling out guidance documents, the

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US FOOD POLICY ❱

All eyes on FDA as food and
supplement makers await regulatory
pathway for CBD
Agency appears adamant it lacks safety data for
quick action, but industry growing increasingly impatient
amid growing consumer demand
by J.R. Pegg

US food and supplement manufacturers, keen to take advantage of booming consumer interest
in cannabidiol (CBD), remain frustrated by a patchwork of state regulatory regimes and the lack
of FDA rules that would legitimize the market and allow for interstate sales of hemp-derived
CBD foods and supplements.

Congress did give the agency a nudge with       be rushed into finding a regulatory route        says that permitting such uses would
new funding for research and a call for the     for CBD foods and supplements. The               require it to carve out an exception under
agency to develop an enforcement                agency has repeatedly said CBD cannot be         the Federal Food, Drug, and Cosmetic Act
discretion policy, but stakeholders are still   added to foods or sold as a supplement           (FDCA), a regulatory process that would
waiting to hear FDA’s timetable for action.     because it was approved 2018 as the              take several years to complete.
                                                active ingredient in Epidiolex, a drug used
FDA, however, has shown no signs it will        to treat childhood epilepsy. The agency          That timeframe is frustrating for

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“As we continue to work                           supplement manufacturers and food                “Congress didn’t put CBD in a special new
                                                  companies eager to cash in on the                class of products, subject to a special set of
as rapidly as possible                            booming market for CBD products. US              rules,” Schiller added. “Under the
to figure out how to                              consumers bought more than $200 million          framework recognized and preserved in the
address this popular                              CBD supplements, ointments and infused           Farm Bill, we look at an FDA-regulated
                                                  foods and beverages last year, and the           product containing CBD the same way as
ingredient that until                             market is predicted to top more than             we would look at an FDA-regulated product
very recently was a                               $1.5 billion by 2025.                            containing any other substance. We apply
controlled substance,                                                                              the same tools and authorities and
                                                  Nearly 25% of American adults – more             statutory provisions.”
it’s important to                                 than 60 million – have tried CBD and found
remember that there                               it effective for pain, anxiety and other         But critics say FDA’s approach ignores the
are no special rules                              ailments, according to a 2018 survey by          threats to consumers and problems for
                                                  Consumer Reports.                                manufacturers from a patchwork of rules.
for CBD”
Lowell Schiller, FDA Principal                    The position prohibits interstate sales of       “Right now, different states have different
Associate Commissioner                            CBD foods and supplements, but several           rules and there is inconsistency,” said
                                                  states – including Colorado, Maine, and          Jonathan Havens, a partner with Saul
                                                  Oregon have legalized CBD as a food              Ewing Arnstein & Lehr. “I understand FDA’s
                                                  and supplement ingredient – while others         challenge. The FDA is not a public pressure
                                                  are following the federal agency’s lead          agency, they are a public interest agency
                                                  and prohibiting such uses or turning a           charged with protecting the public health.
                                                  blind eye.                                       But the reality is this is a really big market
                                                                                                   and from a safety perspective, you want
                                                  Food and supplement manufacturers see            uniform standards.”
                                                  federal rules as critical to the future of the
                                                  CBD industry, arguing the existing               The agency has effectively ignored the vast
                                                  patchwork of rules is encouraging bad            majority of CBD supplements and foods on
                                                  actors, endangering consumers and                the market and has only sent warning
                                                  precluding them from a lucrative market.         letters to CBD companies making overt
                                                                                                   therapeutic claims. The agency sent out 15
                                                  “There is clearly consumer confusion –           warning letters in late November,
                                                  there is a lot of uncertainty all around         reiterating its concerns about the lack of
                                                  and that looks likely to continue,” said         CBD safety data and its policy that CBD is
                                                  Brian Ronholm, senior director of                not Generally Recognized as Safe (GRAS) for
                                                  regulatory policy at Wilson, Sonsini             use in human or animal food. FDA has also
                                                  Goodrick & Rosati. “The heavy lifting is         stepped up its warnings about the potential
                                                  going to be done by FDA and who knows            risks from CBD, telling consumers in a
                                                  how long that will take.”                        November alert that the limited data it has
                                                                                                   reviewed show “CBD has the potential to
                                                  No special rules                                 harm you, and harm can happen even
                                                  FDA officials have repeatedly said the bar       before you become aware of it.”
                                                  for an exemption to allow CBD use in foods
                                                  and supplements is high and contend they         FDA seems to be signaling to consumers
                                                  need more data before moving forward             “that they really view this product as
                                                  with a potential rulemaking.                     unsafe, that they don’t have enough data
                                                                                                   to make confident of its safety,” said
                                                  “There’s still much we don’t know – about        Jessica Wasserman, a partner in the
                                                  the consequences of long-term use, about         Cannabis Law Group at Greenspoon Marder
                                                  the risks to vulnerable populations, and         LLP. “Therefore, they can’t bless it in any
                                                  lots more,” FDA Principal Associate              way, even at a certain dosage. It seems like
                                                  Commissioner Lowell Schiller, the co-chair       things are going to continue as they are.”
                                                  of FDA’s CBD working group, said in Nov. 7
                                                  remarks at the Council for Responsible           “I’m a little critical of FDA on this,”
                                                  Nutrition’s (CRN) annual conference in           Wasserman said, adding the agency is
                                                  Carlsbad, Calif. “As we continue to work as      “scaring consumers” but ignoring the
                                                  rapidly as possible to figure out how to         booming market for CBD products.
                                                  address this popular ingredient that until
                                                  very recently was a controlled substance,        “They always say ‘safety first,’ but this
                                                  it’s important to remember that there are        current situation is unsafe and they aren’t
                                                  no special rules for CBD.”                       showing any urgency,” she said.

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Wasserman added that FDA’s current policy       health and safety in an unregulated CBD           discretion and the process in which CBD
also precludes supplement manufacturers         market,” Matz said. “The absence of a clear       meeting the definition of hemp will be
from submitting New Dietary Ingredient          pathway to market for these products              evaluated for use in products.”
notifications, but suggested the agency         means consumers currently face a variety
may have a more favorable view CBD as a         of risks, from unsubstantiated health and         Lawmakers are also directing FDA “to
supplement rather than a food ingredient.       benefit claims, to a lack of standardization      perform a sampling study of the current
                                                in product labeling and packaging, to             CBD marketplace to determine the extent
The restatement that CBD is not GRAS            products that may not contain the                 to which products are mislabeled or
“signals they are very uncomfortable with       ingredients they purport to contain.”             adulterated” and report to the committees
CBD in food,” she said.                                                                           within six months.
                                                Another option for FDA would be to follow
Havens echoed the view that FDA may             the advice of former FDA Commissioner             But the language falls far short for many
ultimately look more favorably on CBD           Scott Gottlieb, who suggested FDA needs to        stakeholders and is unlikely to quell
supplements than foods, noting the              put the onus on manufacturers to petition         demands for lawmakers to intervene again.
agency’s policy is that adding CBD to foods     the agency to prove CBD can be safely
is a “prohibited act.” By contrast, the         added to foods through the submission of          Wasserman said the directives from
agency says that CBD currently “doesn’t         NDIs or food additive petitions, which            Congress are “all items FDA is doing
meet the definition of a supplement,” he        would include reviews of toxicity studies.        anyway”, adding that language in prior
said, and that the companies it has issued                                                        versions of the spending bill went further
warning letters to have made “exaggerated       “These are the same standards any new             and mandated quicker action and
health claims” on their products. If the        food ingredients are held to,” Gottlieb           immediate enforcement discretion.
agency went after a company for “merely         explained in an July 31 opinion piece
selling a CBD supplement, I question            published by The Washington Post.                 Supplement manufacturers were clearly
whether FDC could win in a court case,”         “Congress can help by passing language            hoping Congress would take a more
Havens said.                                    saying that the FDA doesn’t need to issue a       aggressive approach. A coalition of
                                                broad regulation on CBD and can instead           supplement makers led by the Council for
FDA’s policy does not appear aligned with       rely on petitions filed by individual,            Responsible Nutrition (CRN) and the United
the booming CBD market as “consumer             prospective producers.”                           Natural Products Alliance (UNPA), have
demand for CBD continues to grow rapidly                                                          urged lawmakers to amend the FDCA to
despite the lack of regulatory clarity,” said   In the interim, the FDA could exercise            craft an explicit regulatory pathway for
Peter Matz, director of food and health         enforcement discretion to allow CBD to be         CBD supplements.
policy for the Food Marketing Institute.        marketed in food so long as the products
                                                meet certain conditions, Gottlieb                 In a memo released after the spending
Matz said his group’s members – food            suggested.                                        bill was finalized, UNPA officials said
retailers – are “confused about which CBD                                                         apparently FDA “was not supportive of the
products can be sold legally and where”         Pressure on Congress                              industry’s language recommending an NDI
and also unsure about labeling                  Whether Congress has the appetite for             pathway” for CBD dietary supplements
requirements and quality standards.             Gottlieb’s plan is unclear but pressure from      and “insists on evidence that would
                                                stakeholders did result in a move in late         support a dosage level.”
“However, the bigger concern here is public     December by lawmakers to push FDA to act
                                                more quickly.                                     Wasserman suggested FDA’s position that
                                                                                                  it lacks the needed safety data makes it
                                                The FDA spending bill approved by Congress        unlikely Congress will force the issue and
                                                in December includes $2 million for the           require it to take specific action to open the
                                                agency to study hemp-derived CBD and to           door for CBD foods and supplements.
                                                begin work on an enforcement discretion
                                                policy for food and dietary supplements           “IF FDA says this isn’t safe, you don’t want
                                                that contain the non-psychoactive                 to push them too hard,” Matthews said.
                                                cannabis ingredient.
                                                                                                  Ronholm agreed that lawmakers are likely
                                                Language in the bill earmarks the funding         to be cautious about heaping too much
                                                for “research, policy evaluation, market          pressure on FDA and meddling with its
                                                surveillance, issuance of an enforcement          review of CBD.
                                                discretion policy” of hemp-derived CBD
                                                product. Within 60 days of enactment of           “FDA is just in a really tough spot,”
                                                the appropriations bill, FDA is tasked with       Ronholm said. “They have no safety data
                                                providing the Senate and House                    whatsoever but are being pressured to put
                                                Appropriations Committees with “a report          together regulatory scheme. It is not fair to
                                                regarding the agency’s progress toward            a public health agency.”
                                                obtaining and analyzing data to help
                                                determine a policy of enforcement

www.agribusinessintelligence.com                                   IHS Markit | Agribusiness | IEG Policy | Food & Agriculture Outlook 2020 /    9
Food & Agriculture Outlook 2020 - Agribusiness | IEG Policy - IHS Markit
US FOOD POLICY ❱

FDA to implement updated Nutrition
Facts, define ‘healthy,’ tackle ‘natural’
by Margarita Raycheva

From defining “healthy” to modernizing standards of identity, and perhaps taming the raging
debate over whether plant-based dairy alternatives should be labeled with traditional dairy terms,
FDA has plenty of controversial labeling issues to deal with in 2020.

But before the agency can get there, FDA          Under the new, narrower NFP rules for            potential synthetic fibers remain
will have to deal with ensuring that              fibers, carbohydrates that are not               unanswered, creating uncertainty for many
companies are implementing the new and            inherently present in plants but are             food and ingredient producers, says
updated Nutrition Facts labels – a major          “isolated or synthetic,” can only be listed as   Evangelia Pelonis, partner at Keller and
labeling overhaul that has been in works for      fiber if FDA deems them beneficial for           Heckman LLP.
years and is set to take effect Jan. 1, 2020.     human health. When FDA drafted the new
                                                  NFP rules, it recognized seven synthetic         “That is one area that continues to cause
Though FDA has indicated it will not take         fibers that stand as exception to the rule       stress within that industry,” said Pelonis.
enforcement action on the labels till July        and said it would evaluate requests for
2020, some experts say there are still loose      other potential synthetic fibers through         The remaining petitions include
ends that remain in the way for widescale         Citizen Petitions.                               requests for fiber status for konjac
adoption of the new labels.                                                                        flour, D-tagatose, highly purified
                                                  The agency has been reviewing petitions          glucomannan, arabinogalactan, as well
One issue that remains to be addressed            on a rolling basis and has already allowed       as two individual requests – from Top
is whether FDA will allow certain non-            certain synthetic fibers to be listed.           Health Ingredients and BioNeutra North
digestible carbohydrates to be declared as                                                         America – seeking fiber status for
fibers on the new labels.                         However, seven petitions for six additional      Isomaltooligosaccharide.

10 / Food & Agriculture Outlook 2020 | IEG Policy | Agribusiness | IHS Markit                                  www.agribusinessintelligence.com
The outstanding petitions also include a       healthier products, Bonumose’s CEO Ed            The labeling of plant-
request from a Keller and Heckman client       Rogers told IEG Policy in November.
for gum acacia to be recognized as fiber,
                                                                                                based products and
which could have wider implications for        “The longer that FDA takes to make a             whether they can include
industry, as gum acacia serves as a food       ruling, they actually create a disincentive      terms traditionally used
stabilizer in a range of foods.                for companies to reformulate with healthier
                                               sweeteners,” he said.
                                                                                                on animal-derived foods
Not knowing how FDA might rule,                                                                 will be a hot issue at FDA
companies using those ingredients have         FDA told IEG Policy Nov. 13 it is still          and spill over to Capitol
been holding back on the new NFPs, in          reviewing Bonumose’s request and will
hopes the agency would rule on the             “notify the firm when we have reached
                                                                                                Hill in 2020
petitions before it moves to enforcement       a decision.”
in July, Pelonis said.
                                               FDA to define ‘healthy,’ make
“If the agency can move quicker on these       a move on ‘natural’                              define the term. However, FDA has not
Citizen Petitions, that would help some        2020 may also be the year in which FDA           released any further details on the matter
folks in the industry that are using these     updates the definition for “healthy.”            and rulemaking on “natural” was notably
particular non-digestible carbohydrates to                                                      missing from the agency’s Fall 2019
understand whether they can continue to        After years of deliberation, FDA has drafted     Unified Agenda.
be counted as fiber for labeling purposes,”    a proposal for “healthy,” forwarding it in
she explained. “Industry doesn’t really have   August to the Office of Management and           “I am not quite sure what to make of it,”
much clarity on that, so they are waiting      Budget (OMB) for White House review.             Pelonis said. “It may be just a guidance, not
anxiously for FDA’s response.”                                                                  rulemaking.”
                                               While the timeline for release is unknown,
Decision pending on low-calorie sugars         both advocates and industry are already          Plant-based ‘dairy’ labeling
Another FNP-related decision likely to         eagerly anticipating the proposal.               The labeling of plant-based products and
surface in 2020 is FDA’s response to a                                                          whether they can include terms
petition asking the agency to exempt           “It is important for healthy to be updated,      traditionally used on animal-derived foods
D-tagatose, a low-calorie sweetener, from      in particular by setting limits on added         will be a hot issue at FDA and spill over to
the added sugars declaration on the new        sugars and also [establishing] requirements      Capitol Hill in 2020.
Nutrition Facts panels.                        for whole grain content,” said Sarah
                                               Sorscher, deputy director for regulatory         Most discussion has centered on the battle
The Charlottesville, Va.-based ingredient      affairs at the Center for Science in the         over plant-based dairy labels, as the
manufacturer Bonumose filed the petition       Public Interest (CSPI).                          traditional dairy industry has lobbied FDA to
in February 2018, arguing that D-tagatose                                                       stop allowing plant-based products to use
has been associated with positive health       CSPI has recommended that FDA tackle             terms, such as milk or cheese.
effects and that listing it as added sugar     the claim with caution and ensure that
would “misrepresent the communication of       packaged foods labeled as “healthy” don’t        FDA finally made a move last year,
potential health benefits to the consumer.”    compete for consumer attention with fresh        when under the guide of former
                                               fruits and vegetables.                           Commissioner Scott Gottlieb, it issued a
Hoping that exempting D-tagatose would                                                          request for information to evaluate
encourage companies to use it in place of      “We want to encourage innovation and             whether consumers understand the
traditional sugars, Bonumose was               healthier foods, but we want to ensure the       nutritional differences between plant-
encouraged in April when FDA issued a          core of a healthy eating pattern [remains]       based dairy alternatives and traditional,
guidance allowing another low-calorie          on foods that don’t even have a label at         animal-based dairy.
sweetener – allulose – to be exempted          all,” Sorscher said.
from the NFP added sugar declaration.                                                           After receiving 13,000 comments –
                                               FDA in 2020 may also finally make a move         including proposed labeling solutions from
But to the company’s frustration, FDA has      to define “natural,” another elusive and         both industry and advocates – FDA is still
not yet made a decision regarding              difficult-to-define term that has stirred        reviewing the feedback and has yet to
D-tagatose, even though Bonumose says          numerous lawsuits against food                   decide how to move forward.
FDA should have easily applied the analysis    companies.
it used for allulose, and despite a growing                                                     It’s also unclear whether FDA’s change in
FDA interest low-calorie sugar                 FDA began working on a “natural” definition      leadership may sway the agency’s position
alternatives.                                  in 2015 and collected thousands of               on the matter.
                                               comments, but then stayed quiet until
Getting a determination from FDA on how        Gottlieb last year included defining             Speaking at his first Senate confirmation
D-tagatose can be listed on the NFPs is        “natural” in his Nutrition Innovation            hearing, FDA’s new Commissioner Stephen
important because it will provide food and     Strategy (NIS).                                  Hahn, expressed support for “clear,
beverage companies with an additional                                                           transparent and understandable labeling
incentive to use the ingredient to make        FDA officials now say work is underway to        for the American people” and said he was

www.agribusinessintelligence.com                                  IHS Markit | Agribusiness | IEG Policy | Food & Agriculture Outlook 2020 / 11
very interested in revisiting the labeling of     The effort, which began with a public           2020 and beyond, is an increased interest
plant-based dairy alternatives.                   meeting in 2019, has already ruffled            of food producers to use “clean” labels,
                                                  feathers, as milk producers cautioned that      Pelonis predicted.
However, he did not commit to specific            loosening standards too much could water
action on plant-based labels and dodged a         down essential requirements for the             With consumers continuing to seek foods
request from Sen. Tammy Baldwin (D-Wis.)          content and production of foods.                with ingredients they understand, Keller
that he guide FDA to begin enforcement                                                            and Heckman lawyers have seen a spike in
against “mislabeled” plant-based dairy            Advocates, on the other hand, are also          questions from industry on ways to clear up
alternatives within 60 days of his                watching closely to ensure that any             and simplify ingredient declarations,
confirmation.                                     horizontal changes to the standards are         particularly from ingredient suppliers and
                                                  made with consumers in mind.                    finished food companies.
“FDA may or may not enter that fray,”
Pelonis said, noting that plant-based dairy       “We want to make sure that anything FDA         Companies, Pelonis said, are increasingly
alternatives are just one category of foods       does is going to give consumers clear           questioning what constitutes “common
causing controversy.                              information about genuine healthy choices       and usual” names of ingredients and how
                                                  and also not remove protections that keep       much flexibility they may have on listing
With advances in food technology and              standardized foods of high quality, and         ingredients on food labels.
continuing proliferation on plant-based           nutritious, and free from harmful
products, labeling questions have emerged         additives,” Sorscher said.                      “It would be interesting to see if FDA has
about various novel products – from plant-                                                        seen an uptick in these questions as well,”
based ice cream, butter, margarine and            CSPI will also continue its push for sesame     Pelonis said.
mayo, to meats and even rice-shaped               to be added to the list of allergens
foods that do not contain rice, such as           that must be declared on food packages.         FDA has taken steps to provide industry
cauliflower “rice.”                               FDA in October 2018 opened a request            with more flexibility, particularly in
                                                  for information to collect input on             addressing a 2016 request from NuTek
“People would like more clarity in this           the prevalence of sesame as a food              Food Science to allow companies to replace
area,” Pelonis said. “What we have seen on        ingredient and the scope and severity of        the name of “potassium chloride” with
the meat side, is the states kind of              sesame allergies.                               “potassium salt” on ingredient labels.
legislating in that space. And I think FDA at
some point may come out and provide the           But there has been no further plan for          A sodium alternative that can help reduce
clarity that the industry needs.”                 action, causing frustration at CSPI, which in   salt intake, potassium chloride has been
                                                  2014 petitioned FDA to add sesame to the        slow to gain acceptance from consumers,
Efforts to continue modernizing                   list of the Big Eight allergens.                who incorrectly associate “chloride” with
identity standards                                                                                chemicals, NuTek argued in its petition.
Modernizing standards of identity also            “We wouldn’t want them to unreasonably
remains an FDA priority for 2020, as the          delay any further answering that petition,”     FDA in May issued a draft guidance
agency may decide on specific horizontal          Sorscher noted. “Hopefully they will            proposing to allow food producers to use
approaches that would allow it to work            have some action on sesame in the               “potassium chloride salt” – a slightly
across the board to modernize outdated            coming year.”                                   different term than what NuTek
standards that don’t allow for new                                                                had requested.
technologies, novel ingredients and               Heightened interest in ‘clean’ labels
healthier options.                                Another trend expected to continue in           And while NuTek is pushing for “potassium
                                                                                                  salt,” it remains to be seen if FDA would
                                                                                                  cave under mounting support – from
                                                                                                  industry and advocates – for that option
                                                                                                  when finalizing the guidance.

                                                                                                  A change is possible, Claudine Kavanaugh
                                                                                                  director for the FDA Office of Nutrition
                                                                                                  and Food Labeling (ONFL), recently told
                                                                                                  IEG Policy. But stakeholders would have
                                                                                                  to show strong evidence in support of
                                                                                                  the option.

                                                                                                  Update: Following publication of the story,
                                                                                                  FDA made moves to address some of the
                                                                                                  outstanding petitions on dietary fiber. In
                                                                                                  January, the agency approved a petition
                                                                                                  for konjac glucomannan to be considered
                                                                                                  dietary fiber, but rejected two requests to do
 Image: rblfmr/shutterstock.com
                                                                                                  the same for isomaltooligosaccharide (IMO).

12 / Food & Agriculture Outlook 2020 | IEG Policy | Agribusiness | IHS Markit                                 www.agribusinessintelligence.com
Image: skycolors/shutterstock.com

         EUROPEAN FOOD POLICY ❱

         Airbus tariffs on agri-food products:
         A new chapter in EU-US trade disputes
         by Pieter Devuyst

        In 2019, the EU’s farm and food sectors were hit by US duties over a 15-year old aircraft subsidy
        dispute, which caused deep concerns about damage to their exports. The tariff rift has reignited
        EU-US trade tensions and is likely to escalate in the course of 2020.

        www.agribusinessintelligence.com               IHS Markit | Agribusiness | IEG Policy | Food & Agriculture Outlook 2020 / 13
The first months of 2020                          As anticipated by IEG Policy in April, the US   reacted by agreeing to provide private
                                                  began imposing additional 25% tariffs on a      storage aid for olive oil and launching new
will show whether the                             wide range of EU agri-food imports worth        agri-food promotion campaigns to help
EU executive has a real                           an annual US$4.8 billion (€4.3 billion) on      exporters find alternative markets abroad.
strategy to soften the                            October 18.
                                                                                                  The first months of 2020 will show whether
blow for agri-food                                A few days earlier (October 14), the World      the EU executive has a real strategy to
producers and if it will                          Trade Organisation (WTO) had given the          soften the blow for agri-food producers and
introduce further                                 green light for the duties as retaliation for   if it will introduce further compensation
                                                  the European state aid provided to              measures under the Common Agricultural
compensation measures                             aerospace giant Airbus. This was based on       Policy (CAP).
under the Common                                  a ruling that these subsidies were undue
Agricultural Policy (CAP)                         and caused harm to US manufacturers             Boeing tariffs as retaliation
                                                  such as main rival Boeing, in a case that       The Parliament and the Council were more
                                                  had been in litigation for 15 years.            divided on possible retaliation measures.

                                                  EU agriculture, food and drink associations     While MEPs called for an urgent and
                                                  were quick to express fears that they would     coordinated EU response to the US tariffs,
                                                  suffer serious export losses from the tariffs   most ministers expressed fears that an
                                                  and denounced that their sectors faced          aggressive strategy could lead to a trade war
                                                  collateral damage from a trade dispute in       and further negative impacts to the sector.
                                                  which they were not involved at all.
                                                                                                  Former EU Trade Commissioner Cecilia
                                                  The Trump administration decided to             Malmström had insisted for a long time
                                                  target some of the bloc’s most famous,          that a “negotiated solution” to the aircraft
                                                  high-value food and drinks, whose               dispute would be the best outcome for
                                                  names are often protected by EU                 both sides of the Atlantic.
                                                  Geographical Indications (GIs). Dairy, olive
                                                  oil, spirits and wines are the most             But the unwillingness of the Trump
                                                  affected goods, accounting for 92% of           administration to engage in such a
                                                  total exposed exports.                          dialogue has left EU policy-makers no other
                                                                                                  choice than to strike back.
                                                  This is why Italy – renowned worldwide for
                                                  its excellent food products – is one of the     The EU now plans to impose its own tariffs
                                                  countries hit hardest by the move, together     on US imports based on a ‘hit list’ of goods
                                                  with France, Germany, Spain and the UK –        worth a total of US$20 billion (€18.3
                                                  the European nations where Airbus is            billion), which also covers various food
                                                  manufactured.                                   and drink products.

                                                  Agri-food businesses in these countries         However, the bloc will have to wait until
                                                  bear around 95% of the tariffs, which are       early 2020 to do so, when it is expected
                                                  expected to hinder the industry’s access to     to receive the WTO’s final approval for
                                                  its main foreign destination and lead to        retaliation measures in the similar Boeing
                                                  lower volumes of shipments in the coming        case, where US subsidies have been found
                                                  year 2020.                                      equally in breach of the trade body’s rules.

                                                  CAP support as compensation                     The US was simply free to fire the first shot
                                                  As such, these five EU member states were       in the potential tariff war because its case
                                                  the most vocal ones asking the European         was running nine months ahead.
                                                  Commission for “rapid support” for the
                                                  worst affected agri-food sectors at the         In the meantime, the Commission could
                                                  AGRIFISH Council meeting on October 4.          also activate some unused tariffs from
                                                                                                  other WTO disputes won by the EU. For
                                                  The European Parliament voiced similar          instance, Spain has suggested slapping
                                                  demands almost two months later                 around €4 billion in duties on the US from
                                                  (November 28), pushing the EU executive         a case on special tax treatments settled
                                                  to “mobilise all available market               in 2006.
                                                  instruments” to deal with the resulting
                                                  disturbances.                                   US threatens with 100% tariffs
                                                                                                  On December 2, the WTO further
                                                  By that time, the Commission had already        strengthened the US case for retaliatory

14 / Food & Agriculture Outlook 2020 | IEG Policy | Agribusiness | IHS Markit                                 www.agribusinessintelligence.com
tariffs by rejecting the EU’s stance in the      by the body any time soon.                       trying to work out a trade deal in the wake
Airbus case for the second time.                                                                  of this joint Juncker-Trump declaration,
                                                 New front in US-EU trade disputes                these negotiations never really took off due
A compliance panel ruled that the                At the end of 2019, a WTO ruling on a            to the EU’s resistance to include
European countries – France, Germany,            14-year old aircraft subsidy thus triggered a    agricultural products in the talks.
Spain and the UK – had not withdrawn their       new tariff rift that seems likely to escalate
illegal support to Airbus, even though they      in the course of 2020.                           Meanwhile, the US has made no
were required to do so, and were therefore                                                        movement towards lifting the first ‘Trump
still not in compliance with an earlier          The ‘Airbus tariffs’ opened a new chapter in     tariffs’ imposed on steel and aluminium,
decision by the trade body.                      the trade disputes between the EU and the        meaning the rebalancing measures
                                                 US, which had already increased drastically      imposed by the EU on products worth
Based on this ruling, the US Trade               in recent years.                                 €2.8 billion remain in place.
Representative’s office threatened on
December 9 to increase the tariffs on EU         Over the past year, the EU also made             Both sides are also still in dispute at the
goods and subject additional products            efforts to de-escalate these transatlantic       WTO over earlier US anti-dumping duties
to the sanctions, given what it called a         tensions.                                        applied to Spanish olives dating back
“lack of progress in the efforts to resolve                                                       to 2017.
this dispute”.                                   Lawmakers have agreed to ring-fence the
                                                 bulk of its hormone-free beef quota for US       Looking forward, the EU agri-food sector
Specifically, the tariffs could soon be raised   suppliers from the start of 2020, faced with     could again become the victim of a new
to up to 100% and extended to other              the threat of retaliatory sanctions.             tariff spat in 2020.
agricultural items such as cheese, cheese,
bulk olive oil and wine, sparkling wines,        Meanwhile, the Commission remains                On December 2, the US threatened to
whiskies, hams and pasta.                        committed to buying more soybeans from           impose additional tariffs of up to 100% on
                                                 the country in an attempt to avoid               products imported from France worth US$2.4
The EU already appealed the compliance           additional tariffs on European cars – a          billion (€2.17 billion), including Champagne
panel’s findings in the hope that the trade-     threat which keeps hanging as a sword of         and specialty cheeses such as Gruyère,
distorting subsidies will be fully reversed.     Damocles over the bloc.                          Parmesan and Roquefort, in response the
                                                                                                  country’s new digital services tax.
However, the future of any appeal by the         This is in line with a pledge made by
bloc has become highly uncertain after the       former Commission President Jean-Claude          In reaction, French champagne producers
shutdown of the WTO’s Appellate Body on          Juncker to US President Donald Trump in          and exporters expressed fears about the
December 11, as a result of the US refusal       July 2018, when the US still vowed to hold       impact of the possible trade sanctions and
to appoint new judges on the panel.              off further trade sanctions and work             stressed that they have nothing to do with
                                                 together with the EU towards “zero tariffs,      the dispute.
The impasse will affect both new cases           barriers and subsidies”.
and those already in progress, meaning                                                            The European Commission and France are
the EU’s objections could not be heard           Although EU and US officials had been            already preparing to strike back.

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EUROPEAN FOOD POLICY ❱

Food labelling under pressure
by Sara Lewis

With the release of a long-awaited European Commission report on front-of-pack nutrition labels
imminent, there are no prizes for guessing the issue that is going to dominate at least the first
half of 2020.

Online information                                Fork’ strategy, the Commission made clear      already waiting on the desk of the new
A key trend for 2020 and beyond is towards        it is leaning towards online information.      EU Health and Food Safety Commissioner
offering information online, through                                                             Stella Kyriakides, who took over December
websites and apps linked to smartphones           “The Commission will explore new ways to       1. Her predecessor Vytenis Andriukaitis
via barcodes, rather than traditional labels      give consumers better information,             told IEG Policy in an interview that the
on the food and drink products themselves.        including by digital means, on details such    report was ready but was being left for
                                                  as where the food comes from, its              the new Commissioner. The report looks at
The spirits industry has already been given       nutritional value, and its environmental       the additional front of pack nutrition
the go ahead to offer ingredients and             footprint,” the communication states.          labelling schemes that member states or
nutrition information online and only have                                                       retailers and industry have adopted such
the calorie content on the bottle itself as its   The statement prompted Camille Perrin,         as the Nutri-Score in France and Belgium,
voluntary way of complying with the food          Senior Food Policy Officer at the European     the Scandinavian Keyhole or the UK’s
information to consumers regulation (FIC -        Consumer Organisation (BEUC) to comment        traffic lights. These labels are allowed
1169/2011). This has brought criticism from       that “shifting food information online is      under the FIC regulation’s Article 35 on
consumer and health groups that insist            surely not the way forward, consumers          additional forms of expression or
information should be on the label.               need information on the spot to make their     presentation of the nutrition declaration.
                                                  lives easier.”                                 The same article requires the Commission
Unveiling its European Green Deal on                                                             to adopt a report on the use of these
December 11 and plans for measures to             Nutrition labelling                            additional nutrition labels and logos
help consumers choose healthier and more          The Commission’s report on voluntary           covering their effect on the internal
sustainable diets as part of its ‘Farm to         front of pack nutrition labelling schemes is   market, and the advisability of further

16 / Food & Agriculture Outlook 2020 | IEG Policy | Agribusiness | IHS Markit                               www.agribusinessintelligence.com
harmonisation in this field. It is this report     will be gradually rolled out to all bottles      Campaigners want a
that Andriukaitis left for Kyriakides.             and cans by 2022. SpiritsEUROPE by
                                                   contrast will only be putting calories on
                                                                                                    single European front of
Campaigners want a single European front           labels with other information online, under      pack nutrition label and
of pack nutrition label and are pushing for        its own June 2019 MoU. Wine labelling will       are pushing for the EU
the EU to adopt the Nutri-Score, the colour-       be dealt with by agricultural markets
coded labelling system that grades food            legislation due for adoption in 2020 - the
                                                                                                    to adopt the Nutri-Score,
and drink products according to both their         common market organisation regulation.           the colour-coded labelling
positive content such as fruit and                                                                  system that grades food
vegetables and the negative nutrients they         Origin labelling and GIs
contain like salt, sugar and saturated fat.        Origin labelling will remain a major issue
                                                                                                    and drink products
This is likely to be a major battleground in       going into 2020 as will the protection of        according to both their
2020 as member states such as Italy,               geographical indications (GIs).                  positive content such as
which see colour coded nutrition labels as
detrimental to their traditional food              Always a front runner when it comes to
                                                                                                    fruit and vegetables and
products such as olive oil, against those          origin labelling, France wants to roll out its   the negative nutrients
such as France, which have endorsed the            current meat origin information                  they contain like salt,
label as their national albeit voluntary           requirements to include restaurants and
schemes. France is even looking to make            catering companies. In November France
                                                                                                    sugar and saturated fat
the Nutri-Score mandatory, raising                 notified the Commission of a decree that
concerns about the impact on the single            will require restaurants and catering
market. Nestlé has already decided to use          companies to provide the country of rearing
the Nutri-Score on its product labelling as        and slaughter of pork, poultry and lamb
have some retailers like Belgium’s Delhaize.       meat they serve to their customers from
                                                   April 1, 2020. The Commission and other
Crucially, a petition to make the Nutri-Score      member states have until February 19,
mandatory EU-wide, the European Citizen’s          2020 to raise any concerns about the
Initiative (ECI) Pronutriscore, is open until      decree’s compatibility with EU law.
May 8. If it gains the necessary million
signatures across Europe and meets                 On March 31, 2020 France’s pilot meat and
minimum thresholds in at least seven               dairy origin labelling scheme is due to
member states, then the Commission has             expire, unless it is extended again. The
to react officially, if only to say that it will   scheme, originally launched in 2016, then
not be adopting measures and why. But,             extended in 2018, was the springboard for
apart from France, where the label was             a spate of similar national laws in the EU
developed, Belgium and the Netherlands,            and led to concerns about renationalisation
the petition is not taking off and is well         of food labels. Member states are still
short of the million-signature goal over           waiting to see France’s evaluation report of
halfway to the May 8 deadline. In                  the pilot scheme, which was allowed on
November Green and Socialist MEPs threw            grounds that there was consumer interest
their weight behind the ECI, encouraging           in having this information. A case is
consumers to sign.                                 pending in the European Court of Justice
                                                   challenging the French decree.
Alcohol labelling
Drinks containing over 1.2% alcohol by             Origin labelling would be even more
volume (ABV) were exempted from the FIC            widespread, if the organisers behind
regulation but following a March 2017              another European Citizen’s Initiative (ECI)
report which found this was not justified          eatORIGINal have their way. The ECI closed
industry has been working on self-                 for signatures on October 2 but it has not
regulatory measures to comply with                 yet been confirmed whether the thresholds
ingredients and nutrition information. A           of one million signatures with minimum
single common scheme for all sectors               numbers in seven member states were
proved a pipe dream since the brewers              achieved. Results are expected early in
wanted to have full FIC-compliant labelling,       2020 but a month before the deadline the
while the spirits and wine sectors favoured        ECI already had over 800,000 signatures.
off label information through apps and             Even if the ECI falls, which is unlikely, the
websites. The Brewers of Europe started            organisers are set to continue their
labelling beer voluntarily in 2015, and            campaign for more origin labelling.
under a new memorandum of
understanding (MoU) that the Brewers               The Commission and member states have
signed with the Commission in October, it          a February 17 deadline to object to an Irish

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