Speaking Out for Agriculture
Inside D.C.
House Ag Committee hears experts on beef trade with Canada, Japan
Wednesday, March 2, 2005, 9:27 AM
by Josh St. Peters
The Secretary of Agriculture told lawmakers yesterday that the resumption of beef trade between the U.S. and Canada is critical, as it could set the precedent for redeveloping an export business with the Japanese. At a Congressional hearing before the House Agriculture Committee, Mike Johanns said that trade relationships between the U.S., Japan, and Canada must be standardized in order to create an ideal system for importing and exporting cattle across the U.S. borders.
At the hearing, farm state leaders heard from two panels representing a variety of interests in the cattle business. Johanns spoke on behalf of the Bush Administration, and was joined by the U.S. Department of Agriculture’s Chief Economist, Keith Collins and the Animal and Plant Health Inspection Service Administrator, Dr. Ron DeHaven.
The three USDA leaders painted a picture of scientific-based and economically-founded reasons to restart importing Canadian live cattle. The Secretary specifically pointed to the fact that a lack of U.S. action on Canada's trade requests could serve as a leverage point for the Japanese.
“Additional delays could further complicate relations between the United States and Japan,” Johanns said.
Chuck Kiker, a regional director for R-CALF United Stockgrowers of America (R-CALF USA), told the Representatives that resuming imports of Canadian cattle is a bad idea.
“I have the utmost confidence in the beef we produce in the U.S.,” he said. “Unfortunately, Canada has a problem, and I don’t think it’s being addressed.”
R-CALF USA has long been an opponent of reopening the U.S. border to Canada. Meanwhile, the National Cattlemen’s Beef Association (NCBA) has varied their stance on the issue, first supporting beef trade, and then opposing the March 7, 2005 deadline for reopening the border.
At yesterday’s hearing, NCBA President Jim McAdams testified that his group had regained confidence in the science behind authorizing the beef imports. He said NCBA was fully supporting the Bush Administration’s minimal risk rule that lets Canadian cattle across the border.
But McAdams also urged the leaders to consider sanctions against the Japanese, due to the lack of interest in quickly resuming trade. The Texas cattleman pointed out that the U.S. has met all the scientific demands of the Japanese, but still has not succeeded in getting their business back.
“Many of our major trading partners still will not allow our product. We cattlemen expect that the government will ensure that we are treated fairly in the international arena," he said. "When our trading partners do not use sound science to base their rules upon, when they don’t follow the rules, and when they don’t negotiate in good faith, we expect our government to defend us by using all the tools necessary, including economic sanctions.”
The Congressmen also heard testimony from Cargill’s Vice President for Meat Procurement, Ken Bull, and Carl Kuehne, President of American Foods Group.
Johanns warned that U.S. cattlemen could run the risk of losing export business to the Canadians, if the cattle trade isn’t equalized between all three nations. The USDA leader warned that should Americans choose not to let Canadian cattle back across the border, it may leave that country’s leaders in a position to strike a trade deal with the Japanese.
The House Agriculture Committee chairman agreed with Johanns, supporting the Administration’s plan to restart trade with Canada. Virginia republican Bob Goodlatte credited the country’s robust surveillance system as clear evidence that it was safe to begin processing Canadian cattle in the U.S.
“I believe that all of our witnesses will agree that the discovery of a BSE positive cow in Canada in may of 2003 set in motion a string of events that have commanded our attention ever since. At the time, my view was that we should rely on sound science to work our way through this problem,” he said. “Since then, I have not been swayed by those who would use this situation to create non-tariff trade barriers or unnecessarily disrupt the free operation of our markets.”
The ranking Democrat on the committee, Representative Colin Peterson of Minnesota, asked the Secretary of Agriculture if USDA might not want to step away from its minimal risk rule and instead focus on putting the money that would have been spent implementing the rule into the new National Animal Identification System.
But the Agriculture Committee chairman warned his peers that this issue of beef trade could have a long-term impact on U.S. producers and foreign trading partners. He urged each person in the hearing to maintain a stance rooted in science, while considering the economic impacts of each decision they are asked to make.
“The public policy decisions being made now will have far-reaching implications for producers, processors, retailers and consumers and we owe it to them to remain both prudent and thoughtful,” Goodlatte said.
Brownfield's Washington Correspondent Matt Kaye contributed to this report.
Inside D.C.
House Ag Committee hears experts on beef trade with Canada, Japan
Wednesday, March 2, 2005, 9:27 AM
by Josh St. Peters
The Secretary of Agriculture told lawmakers yesterday that the resumption of beef trade between the U.S. and Canada is critical, as it could set the precedent for redeveloping an export business with the Japanese. At a Congressional hearing before the House Agriculture Committee, Mike Johanns said that trade relationships between the U.S., Japan, and Canada must be standardized in order to create an ideal system for importing and exporting cattle across the U.S. borders.
At the hearing, farm state leaders heard from two panels representing a variety of interests in the cattle business. Johanns spoke on behalf of the Bush Administration, and was joined by the U.S. Department of Agriculture’s Chief Economist, Keith Collins and the Animal and Plant Health Inspection Service Administrator, Dr. Ron DeHaven.
The three USDA leaders painted a picture of scientific-based and economically-founded reasons to restart importing Canadian live cattle. The Secretary specifically pointed to the fact that a lack of U.S. action on Canada's trade requests could serve as a leverage point for the Japanese.
“Additional delays could further complicate relations between the United States and Japan,” Johanns said.
Chuck Kiker, a regional director for R-CALF United Stockgrowers of America (R-CALF USA), told the Representatives that resuming imports of Canadian cattle is a bad idea.
“I have the utmost confidence in the beef we produce in the U.S.,” he said. “Unfortunately, Canada has a problem, and I don’t think it’s being addressed.”
R-CALF USA has long been an opponent of reopening the U.S. border to Canada. Meanwhile, the National Cattlemen’s Beef Association (NCBA) has varied their stance on the issue, first supporting beef trade, and then opposing the March 7, 2005 deadline for reopening the border.
At yesterday’s hearing, NCBA President Jim McAdams testified that his group had regained confidence in the science behind authorizing the beef imports. He said NCBA was fully supporting the Bush Administration’s minimal risk rule that lets Canadian cattle across the border.
But McAdams also urged the leaders to consider sanctions against the Japanese, due to the lack of interest in quickly resuming trade. The Texas cattleman pointed out that the U.S. has met all the scientific demands of the Japanese, but still has not succeeded in getting their business back.
“Many of our major trading partners still will not allow our product. We cattlemen expect that the government will ensure that we are treated fairly in the international arena," he said. "When our trading partners do not use sound science to base their rules upon, when they don’t follow the rules, and when they don’t negotiate in good faith, we expect our government to defend us by using all the tools necessary, including economic sanctions.”
The Congressmen also heard testimony from Cargill’s Vice President for Meat Procurement, Ken Bull, and Carl Kuehne, President of American Foods Group.
Johanns warned that U.S. cattlemen could run the risk of losing export business to the Canadians, if the cattle trade isn’t equalized between all three nations. The USDA leader warned that should Americans choose not to let Canadian cattle back across the border, it may leave that country’s leaders in a position to strike a trade deal with the Japanese.
The House Agriculture Committee chairman agreed with Johanns, supporting the Administration’s plan to restart trade with Canada. Virginia republican Bob Goodlatte credited the country’s robust surveillance system as clear evidence that it was safe to begin processing Canadian cattle in the U.S.
“I believe that all of our witnesses will agree that the discovery of a BSE positive cow in Canada in may of 2003 set in motion a string of events that have commanded our attention ever since. At the time, my view was that we should rely on sound science to work our way through this problem,” he said. “Since then, I have not been swayed by those who would use this situation to create non-tariff trade barriers or unnecessarily disrupt the free operation of our markets.”
The ranking Democrat on the committee, Representative Colin Peterson of Minnesota, asked the Secretary of Agriculture if USDA might not want to step away from its minimal risk rule and instead focus on putting the money that would have been spent implementing the rule into the new National Animal Identification System.
But the Agriculture Committee chairman warned his peers that this issue of beef trade could have a long-term impact on U.S. producers and foreign trading partners. He urged each person in the hearing to maintain a stance rooted in science, while considering the economic impacts of each decision they are asked to make.
“The public policy decisions being made now will have far-reaching implications for producers, processors, retailers and consumers and we owe it to them to remain both prudent and thoughtful,” Goodlatte said.
Brownfield's Washington Correspondent Matt Kaye contributed to this report.