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Agreement Puts U.S. Beef Trade With Japan Nearer

HAY MAKER

Well-known member
Agreement Puts U.S. Beef Trade
With Japan Nearer To Resumption

By Richard Smith

TOKYO — The first hurdle toward U.S.-Japan beef trade resumption was crossed May 17 to 19 when Japanese government officials accepted a USDA report giving a clean bill of health to the 35 beef processing plants wanting to export to Japan.

The plants were audited by USDA inspectors between April 24 and May 4.

"The government of Japan has accepted the report," USDA acting undersecretary for marketing and regulatory programs Chuck Lambert told reporters for foreign and Japanese media during a May 19 press conference at the Tokyo American Center.

Lambert submitted the document during negotiations a technical team he headed held with counterparts from the Japanese ministries of Foreign Affairs, of Agriculture, Forestry and Fisheries, and of Health, Labor and Welfare.

The U.S. officials told the Japanese side all 35 plants have manuals on how to remove the forbidden parts, and workers at the plants have undergone training for that purpose.

Japanese officials said the audit addressed most of Japan's concern for quality control, media here reported.

Although minor clerical and procedural problems are present at some facilities, Japan believes "they are not at a level that could prevent acceptance or use of the products," the officials said in a statement.

Both sides agreed Japan will send inspectors to verify the plants before import resumption. "We did reach an agreement Japanese inspectors could accompany FIS and AMS inspectors on an unannounced basis," to inspect plants after resumption, Lambert said.

Assuming the safety standards put forward by the U.S. side are truly in place, Japan must hold further discussions on what measures are needed to resume imports, Hirofumi Kugita, director of the animal health division of the Ministry of Agriculture, Forestry and Fisheries, told the Tokyo English-language daily The Japan Times.

Japanese media reported the government would decide in mid-June to resume imports, and restart imports in July if the Japanese inspectors confirm conditions are met.

"End of June is a target," for the U.S. side, Lambert said. But, "there is no agreement on a timeline on when those steps will follow."

Sankei Shimbun, Japan's sixth-biggest daily (total circulation 2.9 million), reported May 17 the Japanese government will try to resolve the issue before Koizumi's summit talks with president Bush.

Headlined "Towards U.S. Beef Resumption: The (Japanese) Government (Wants) A Settlement Before Heads Of State Talks," the story said if a decision is deferred until after the summit, Japan may give the impression of having bowed to U.S. pressure.

Delaying a decision could also cause major friction with the U.S., the article said.

But the Japanese press agency Kyodo reported that Shoichi Nakagawa, minister of Agriculture, Forestry and Fisheries, said May 19 the import resumption process and Koizumi's U.S. visit are unrelated, saying they are "in completely different dimensions."

Media here reported that convincing Japanese consumers U.S. beef is safe will be more difficult than convincing their government. Many don't plan to buy U.S. beef, even if trade resumes, The Japan Times reported.

"I just don't believe U.S. beef is safe," Tokyo homemaker Maki Ishii told the newspaper. "I get the impression Japan just wants to bring a gift to the U.S., and that food safety is a secondary issue."

To reassure consumers, government officials will hold meetings in 10 cities throughout Japan to explain the results of the negotiations. Lambert said once markets are reopened, the U.S. will conduct consumer outreach progams.

"We have in the past done videos, tastings, recipes," Lambert told Livestock Weekly. "There are any number of channels to improve understanding."

Asahi Shimbun, Japan's second-biggest daily (total circulation 12 million), MAFF and the Ministry of Foreign Affairs have been pushing for import resumption.

But the Ministry of Health, Labor and Welfare, which is in charge of safety management of meatpacking facilities, remained cautious and asked U.S. officials to provide detailed explanations on technical and other aspects, the newspaper said.

Masaru Yamada, senior writer for the agricultural daily Nihon Nogyo Shimbun, told Livestock Weekly MHLW worries about protecting the health of the country's citizens.

"That's normal," he said. "Whereas MAFF wants the money it gets from beef tariffs."

The May 17-19 meeting between the U.S. technical team and their Japanese counterparts is one step toward lifting Japan's ban on U.S. beef, assessed the Japan director of trade projects and trade communications for the U.S. Meat Export Federation.

"Some media are already indicating timing of the resumption," Harada told Livestock Weekly. "But there are details to be worked out."

In the upcoming public exchanges of opinion to be held in 10 cities throughout Japan, "the Japanese government needs to explain things thoroughly to the public, not just to activists," he said.

Harada noted the meeting did not give much details. "Details of how long the Japanese auditors will audit, how long they will be in the States, is still unknown," he said.

Asked about media reports of negative consumer perception of U.S. beef, Harada acknowledged USMEF surveys turn up such results. However, he wondered if such attitudes were fundamental or just the outcome of media and consumer activist influence.

"There is a difference between perception and actual purchases," he said.

As a first step, USMEF will have to reassure the Japanese industry. "They are the best speakers for our products," Harada said. "Also, we are at the stage of preparing promotional activities."

The Japan Food Service Association, comprising 450 restaurant operators, said it would urge its member companies to state the origins of their beef, reported Yomiuri Shimbun, Japan's biggest daily (total circulation 14 million).

"Our industry has been terribly affected (by the U.S. beef ban). "We welcome this agreement by the two nations, which is likely to pave the way for a resumption of beef imports," JFSA said in a statement.

The newspaper reported JFSA said the demand for U.S. beef would likely be only 30 percent of what it was before imports were halted, because consumers distrust U.S. beef, and the U.S. will only be allowed to export meat from cattle aged 20 months or younger.

Also, as two and a half years have passed since the ban was imposed, major restaurant operators have found beef suppliers in other countries. For example, Reins International Inc. and Matsuya Foods Co. now use Australian beef instead of U.S. beef for many of their dishes, Yomiuri Shimbun reported.

Reins operates Gyukaku, Japan's leading Korean barbecue restaurant chain. Matsuya Foods is a purveyor of gyudon (bowls of stripped beef on rice).

Yoshinoya D&C, the leading gyudon restaurant, runs more than 1000 outlets in Japan and around 250 overseas. The chain insists only U.S. beef can meet its standards, yet started using Australian beef this year.

Zensho Co., operator of the Sukiya gyudon chain, is determined not to use U.S. beef because of lack of trust in what its officials call the "careless" handling of risky beef parts in the U.S., the Japanese press agency Jiji reported. Jiji reported Anrakutei Co., a Korean barbecue restaurant chain, intends not to jump in and use U.S. beef.

Japanese supermarket stores are generally cautious about putting U.S. beef on shelves, acknowledging Japanese consumers' trust in the meat had been shaken, Jiji said.

An official at one supermarket store operator told Jiji the company had found an alternative in Australian beef that suits the taste of Japanese consumers and indicated the company's reluctance to sell U.S. beef again.

Another unresolved issue is the 2000 imperial tons of imported beef sitting in freezers and refrigerators, as it cannot clear the nation's customs, Yomiuri Shimbun reported.

No decision was made on how to deal with stored beef at the working-level meeting of Japan and U.S. officials, the newspaper said.

A document released after the meeting said only an examination of records showed there was no problem with the stored beef. The Japanese government is expected to formulate a policy to handle stored beef before an official decision is reached in mid-June over import resumption, Yomiuri Shimbun said.

The newspaper said even if the beef were to clear customs, it is uncertain whether wholesalers will purchase it, worrying the firms involved in the meat's import.
 
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