With the introduction of the feed label, updates to all three countries have begun. The recent updates of the API state that “we announce that Google is removing the country targeting requirement and replacing it with a new feed label.”

Here are a few updates by Google:
Any Google account can set the feed label in the shopping set to get the shopping and the performance max campaigns. You can set the feed label in the Google ads API and Google ads UI.
On September 14th, 2022, we started the gradual rollout of feed labels in the merchant center UI. When this feature is enabled in the UI, only then will the merchant be able to create a new feed.
Content API
- Products that have only a feed label and do not target the country were added to the merchant center UI.
- The products with the feed labels are not two-letter country codes.
Summary of API behavior:
Here is the clarification from Google about the current API behavior for feed labels:
Let us tell you that you can only call products. insert on products with a matching feed label and target country. This behavior will not change if you just want to continue to use the target country. If you set the feed label for a valid two-letter CLDR territory code, you must still set the shipping attribute of the product’s resource to the same country. Once the feed label is set for a product then it will also become a part of the product id.