Canada could soon find itself engaged in another battle over Country of Origin Labeling.

The Italian government has submitted a proposal to the EU Commission that would require labelling on all pasta that is sold in the country.

Cereals Canada President Cam Dahl says this would have a major impact on Canadian farmers that grow durum wheat.

"That would significantly increase the cost of producing pasta in Italy, producing pasta from Canadian durum," he explained. "Ultimately, that cost is passed on to Canadian farmers either through reduced exports to Italy or reduced value for our sales that are going into Italy and likely probably both."

Dahl notes that Italy is one of Canada's largest export markets for durum wheat, the other being Algeria.

He adds the EU Commission is currently reviewing the proposal, which is a 90-day process.

"I am hopeful that the European [Union] Commission will rule that this does not comply with EU regulations and the process will end there. We do have to prepare ourselves for the other answer and have to look at other ways to combat this such as WTO [World Trade Organization] action."

Dahl believes that protectionist measures such as this will become more common with countries in the European Union, which is another reason why Canada needs to fight back to prevent other cases from cropping up.

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