Organization for Competitive Markets
P.O. Box 6486
Lincoln, NE 68506
Date: January 10, 2005
FOR IMMEDIATE RELEASE
Contact: Michael Stumo, 860.379.6199
OCM Urges Modification of Border Reopening Rule
Lincoln, NE ~ The Organization for Competitive Markets (OCM)
announced today it is urging Congress and the Bush Administration to delay reopening
U.S. borders to live Canadian cattle.
Three conditions must be present to protect our domestic markets: (1) restore
Asian export markets; (2) implement mandatory country of origin labeling (COOL);
and (3) disallow importation beef and beef products derived from Canadian
cattle over 30 months of age.
USDA’s rule to reopen U.S. borders to live Canadian cattle
was published in the January 4, 2005 Federal Register and will take effect on
March 7, 2005. Barring any intervention by Congress during its 60-day review
period, Canadian cattle and additional beef could begin entering the U.S.
During the review period Congress has the opportunity to reject the rule in
total or to modify any part of it. USDA’s rule will permit live cattle under 30
months of age into the U.S. and beef derived from cattle of any age.
"Restoration of cattle and beef trade with Canada is a
complex issue and must not be rushed into without the necessary research and
economic analysis," noted Keith Mudd, OCM President. "U.S. export
markets along the Pacific Rim closed when an imported Canadian dairy cow was
diagnosed with bovine spongiform encephalopathy (BSE) on U.S. soil resulting in
losses of $8 billion or more, according to market analysts. To date, those
markets have not reopened. It is premature for USDA to consider reopening
borders before those markets are reestablished creating a foundation for market
growth. It is also premature to consider expanded imports of Canadian beef
until mandatory COOL is implemented, giving consumers the information they need
to make informed purchasing choices."
USDA’s economic analysis projects losses to U.S. producers
in the range of $2.7 to $3 billion from its intended action to reopen borders.
"Under these economic forecasts, we’re not sure why USDA included meat
from animals over 30 months of age. This expanded trade would create even
further economic disparity," said Mudd. "At risk is consumer
confidence. It would be prudent for both the U.S. and Canada to complete
ongoing BSE risk surveillance programs before this sort of dramatic policy
change is undertaken."
"U.S. cattle producers raise the safest, most wholesome product in the world. It is understandable that other nations want access to our domestic markets and a fair balance of trade is key to profitability. However, we cannot risk human and animal health in the name of trade for trade’s sake. We must approach trade restoration with our Canadian neighbors carefully, with the best science and economic analysis available, and certainly not before a mandatory labeling program is underway in America."
The Organization for Competitive Markets (OCM) is a multidisciplinary, nonprofit group of farmers, ranchers, academics, attorneys and policy makers dedicated to reclaiming the agricultural marketplace for independent farmers, ranchers and rural communities. OCM helps lead the Cattlemen’s Competitive Market Project which is a voluntary contribution program funding the effort to increase demand for U.S. cattle and beef in open and competitive markets.