USDA to finalize controversial country-of-origin labeling rules.

The Bush administration faces a daunting task as it prepares final regulations due next month for country-of-origin labels on meat, produce and fish sold in American grocery stores.

The controversial rule, which Congress approved as part of the farm bill, has sparked complaints from U.S. trading partners as being protectionist, while U.S. food makers say it will be a costly and unfair burden. The labels will inform consumers where meat, fish, fresh fruit and vegetables and peanuts originated. Only items raised in the U.S. can be labeled as U.S. products. USDA has until Sept. 30 to implement the new program, which will start as a voluntary system and become mandatory after two years.

The American Farm Bureau Federation and the National Farmers Union lobbied for the program as a way to distinguish U.S.-produced meat from those of competitors.

The Bush administration has complained that the new labeling provision will be too costly for the food industry and may violate trade agreements, but Secretary Veneman has promised the Department will implement the program as Congress intended.