Democrats propose country of origin rule for food, drugs

Democratic lawmakers want to make sure people know where their food and drugs come from and the overseas plants producing them are regularly inspected.

Leaders of the House Energy and Commerce Committee proposed Thursday that all produce labels be required to show the country of origin. They also want food manufacturers of all kinds to identify on their corporate Web site where each ingredient in a particular food product originated.

Drug labels also would have to identify the source of a medicine's active ingredient and its place of manufacture. Labels for all medical devices would have to show country of origin, as well.

The United States imports more than $2 trillion worth of products from more than 150 countries. Lawmakers and the Bush administration say a variety of food and drug safety problems, such as the 62 deaths recently associated with contaminated batches of the blood thinner heparin, point to the need for improved oversight.

Draft legislation on the expanded product identification was sent to lawmakers and the food, drug and medical device industries. Next week, the committee will have hearings on the proposal.

Rep. John Dingell, D-Mich., and chairman of the Energy and Commerce Committee, said consumers deserve to know where their purchases come from.

"How are you going to know what is in there or whether it's safe if you don't know where it comes from?" Dingell asked. "For example, if it comes from Great Britain, you're going to assume it's pretty safe. If it comes from Canada, it's probably pretty safe. If it comes from China, you're going to say, 'Holy cats, we better watch out.'"

The legislation also calls for much more money for the Food and Drug Administration through new fees paid by industry. All food manufacturers serving the U.S. market, whether they are inside or outside the United States, would have to pay $2,000 for each of the manufacturing, distribution and storage facilities they have in operation.

The fees would generate about $600 million annually, which would be used to beef up the Food and Drug Administration. Democratic lawmakers said the agency needs to inspect all foreign and domestic food facilities at least once every four years. Companies that refused to be inspected would not be allowed to ship to the U.S.

In all likelihood, producers would pass the additional costs to customers in the form of higher food prices.

"At a time when thousands of Americans are being forced out of their homes and losing their job, it makes little sense for Congress to arbitrarily increase the price of food," said Scott Faber, vice president for federal affairs at the Grocery Manufacturers Association.

Jean Halloran, director of food policy initiatives with Consumers Union, said prices probably would not rise much but "I think consumers would be willing to pay a little more to ensure their food is safe."

The legislation would create a permanent foreign inspection force with staff assigned to certain countries so they were more familiar with companies, customs and language. Inspections would have to be done every two years for drug and medical device facilities.

The bill incorporates several measures sought by the Bush administration, such as authority for the FDA to conduct mandatory recalls of products. Now, the agency can only request that companies undertake a recall. Faber said the grocery manufacturers support FDA's ability to force recalls.

The trade association representing drug manufacturers said it has not taken a stance on foreign inspections or country of origin labeling. However, it's clear that the FDA does need more money, the association says.

"The agency's responsibilities have soared, yet its resources have not kept up to meet these increasing demands," said Ken Johnson, senior vice president of the Pharmaceutical Research and Manufacturers of America.

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