In a summary of achievements, the White House pointed on Monday to progress toward increased competition, including action on livestock marketing, consumer right-to-repair and ocean shipping rates. It said President Biden would “highlight progress we need to continue to make to promote competition and protect consumers” in the State of the Union speech on Tuesday, with so-called junk fees as an area for action.
Since last May, the USDA has proposed two of its three planned regulations to give poultry, hog and cattle producers more leverage in dealing with meat processors. One would reform the so-called tournament system that pits poultry producers against each other in a struggle for revenue. The other would prevent unfair and deceptive practices in livestock marketing, along with undue biases.
“The administration has taken a number of steps to increase competition in the meat and poultry markets,” said the White House in a fact sheet with the headline, “The Biden economic plan is working.” Besides the meatpacker rules, “USDA is also using $1 billion to expand independent meat processing capacity so the market isn’t dominated by just a few big players,” said the fact sheet.
Four activist farm groups called on the administration to finalize the USDA rule against discriminatory practices by meat processors and to work with Congress to reinstate mandatory country-of-origin labels on packages of meat and poultry.
Biden’s executive order in July 2021, directing federal agencies to promote competition throughout the U.S. economy was “a long time coming and a step in the right direction to address a number of our long-term problems,” said Rhonda Perry of the Missouri Crisis Center. “Now, our job is to make sure his administration follows through.”
The Federal Trade Commission voted in late July 2021 to ramp up its enforcement of laws that protect the consumer right to repair and it proposed settlements last July with three companies that suggested their warranties would be void if they went to independent repair shops or used third-party parts. Only one state, New York, has a right-to-repair law and it is limited to digital electronic equipment manufactured after this July 1. A handful of federal right-to-repair bills died when Congress adjourned at the end of last year.
Congress enacted ocean shipping reforms last year to make it harder for cargo lines to refuse to load U.S. exports and to charge high rates during periods of turmoil. The legislation was a response to supply chain breakdowns. The White House said the new law will reduce costs for shippers, to the benefit of American consumers, “and ensure fairer treatment for exports from our farmers and ranchers.”
Agriculture Secretary Tom Vilsack was to join panel discussions in North Carolina on Wednesday and Thursday to highlight the administration’s economic efforts. Vilsack was scheduled to discuss the USDA’s $3.1 billion array of projects to develop climate-smart commodities and economic development projects such as high-speed internet and water infrastructure.