Implications of Prop 12 Extend Beyond California to Other States and Countries

The Assistant Vice President and General Counsel with the National Pork Producers Council warns the implications for pork producers of California's Proposition 12 extend beyond that state to the rest of the United States and even other countries.

The National Pork Producers Council and the American Farm Bureau Federation have petitioned the U.S. Supreme Court to consider the constitutionality of California’s Proposition 12, due to take effect January 1, which would ban the sale of pork from hogs that don’t meet that state's production standards.

Michael Formica, the Assistant Vice President and General Counsel with the National Pork Producers Council, notes under the U.S. constitution one state is not allowed to impose a tax or regulatory requirements to inhibit trade with other states or countries.

Clip-Michael Formica-National Pork Producers Council:

California was supposed to issue regulations on how to comply with Prop 12 back in September of 2019. This summer they issued a proposed rule. The comment period on that proposed rule closed on August 27.

They are not anywhere near done drafting the final rule. In fact, in that comment period, the Republic of Canada even weighed in and requested that California enter into trade negotiations with the Republic of Canada because of the impact that this law will have with California trying to reach into Canada to try to regulate production in Canada.

Under the U.S. constitution, an individual state can't negotiate separate trade terms with a foreign country. That eliminates the entire reason we exist as a country going back to 250 years.