Sandhusker
Well-known member
Cattle Producers Support Oman FTA
in Testimony Before U.S. Senate Finance Committee
(Billings, Mont.) – Today, R-CALF USA provided testimony to the U.S. Senate Finance Committee in support of the U.S.-Oman Free Trade Agreement (Oman FTA). Oman is a net importer of beef, but so far its market has been largely untapped by U.S. cattle producers.
"Under the Oman FTA, Oman's tariffs on all imports of beef products from the U.S. go to zero immediately. Oman, which exports very little beef to the world, will also receive duty-free and quota-free access to the U.S. after a quota on imports from Oman phases out in 10 years," said Doug Zalesky, chair of R-CALF USA's International Trade Committee. "The net impact on cattle and beef trade under this FTA should be to allow U.S. producers to access more of the Omani beef market and build an important strategic presence in the Middle Eastern region."
While R-CALF USA supports the Oman FTA, it is important to note this agreement does not incorporate the rules of origin for cattle and beef that R-CALF USA has consistently sought in preferential trade agreements.
"R-CALF believes that preferential trade agreements should include a 'born, raised and slaughtered' (BRS) rule of origin for cattle and beef to ensure that the benefits of the agreement accrue to product of the country, or countries, participating in the agreement," Zalesky noted. "While the failure to include a BRS clause in the Oman FTA is not especially significant, failure to do so in other ongoing trade negotiations could be critical.
"In other agreements, the rules of origin must be strengthened so that third countries are not allowed to benefit from access to the U.S. market without providing reciprocal access to U.S. products," he continued.
While supporting the Oman FTA, R-CALF USA will continue to push for improvements in overall U.S. trade policies regarding cattle and beef and assess future trade agreements on a case-by-case basis. In particular, R-CALF USA believes U.S. trade negotiators should pursue a strategic program of bilateral, regional, and multilateral trade negotiations that:
● Reduce global market distortions such as high import tariffs abroad, restrictive quotas, and large subsidies to cattle and beef producers in other countries;
● Upwardly harmonize health and safety standards to allow for increased trade while protecting animal health and consumer safety;
● Include a 'born, raised and slaughtered' rule of origin for beef receiving preferential market access; and
● Create special rules for cattle and beef trade that reflect the highly perishable nature of our product and the special needs of our producers by protecting them from import surges and excess price volatility.
R-CALF USA continues to encourage significant reforms in U.S. and international trade policies affecting cattle and beef. Over the past decade, the United States' cattle and beef industries lost significant ground in international trade. The U.S. has not enjoyed a dollar surplus in cattle and beef trade since 1997, and the deficit in this sector has increased over the past six years, hitting more than $3.3 billion in 2004, according to data from the U.S. Department of Commerce. At the same time, the historical volume deficit has reached new highs, while imports of beef, largely from Canada, have reached record highs.
"USDA (U.S. Department of Agriculture) reports that the United States was the second largest exporter of beef in the world in the year 2000," Zalesky noted. "Unfortunately, the U.S. has regressed to the rank of ninth in overall beef exports for 2004.
"Until distortions in international cattle and beef markets are addressed comprehensively at a global level, the U.S. should pursue FTAs strategically to move toward these goals," Zalesky emphasized. "Because the Oman FTA represents an important step in the right direction for U.S. cattle and beef producers, R-CALF USA urges Congress to support this agreement."
in Testimony Before U.S. Senate Finance Committee
(Billings, Mont.) – Today, R-CALF USA provided testimony to the U.S. Senate Finance Committee in support of the U.S.-Oman Free Trade Agreement (Oman FTA). Oman is a net importer of beef, but so far its market has been largely untapped by U.S. cattle producers.
"Under the Oman FTA, Oman's tariffs on all imports of beef products from the U.S. go to zero immediately. Oman, which exports very little beef to the world, will also receive duty-free and quota-free access to the U.S. after a quota on imports from Oman phases out in 10 years," said Doug Zalesky, chair of R-CALF USA's International Trade Committee. "The net impact on cattle and beef trade under this FTA should be to allow U.S. producers to access more of the Omani beef market and build an important strategic presence in the Middle Eastern region."
While R-CALF USA supports the Oman FTA, it is important to note this agreement does not incorporate the rules of origin for cattle and beef that R-CALF USA has consistently sought in preferential trade agreements.
"R-CALF believes that preferential trade agreements should include a 'born, raised and slaughtered' (BRS) rule of origin for cattle and beef to ensure that the benefits of the agreement accrue to product of the country, or countries, participating in the agreement," Zalesky noted. "While the failure to include a BRS clause in the Oman FTA is not especially significant, failure to do so in other ongoing trade negotiations could be critical.
"In other agreements, the rules of origin must be strengthened so that third countries are not allowed to benefit from access to the U.S. market without providing reciprocal access to U.S. products," he continued.
While supporting the Oman FTA, R-CALF USA will continue to push for improvements in overall U.S. trade policies regarding cattle and beef and assess future trade agreements on a case-by-case basis. In particular, R-CALF USA believes U.S. trade negotiators should pursue a strategic program of bilateral, regional, and multilateral trade negotiations that:
● Reduce global market distortions such as high import tariffs abroad, restrictive quotas, and large subsidies to cattle and beef producers in other countries;
● Upwardly harmonize health and safety standards to allow for increased trade while protecting animal health and consumer safety;
● Include a 'born, raised and slaughtered' rule of origin for beef receiving preferential market access; and
● Create special rules for cattle and beef trade that reflect the highly perishable nature of our product and the special needs of our producers by protecting them from import surges and excess price volatility.
R-CALF USA continues to encourage significant reforms in U.S. and international trade policies affecting cattle and beef. Over the past decade, the United States' cattle and beef industries lost significant ground in international trade. The U.S. has not enjoyed a dollar surplus in cattle and beef trade since 1997, and the deficit in this sector has increased over the past six years, hitting more than $3.3 billion in 2004, according to data from the U.S. Department of Commerce. At the same time, the historical volume deficit has reached new highs, while imports of beef, largely from Canada, have reached record highs.
"USDA (U.S. Department of Agriculture) reports that the United States was the second largest exporter of beef in the world in the year 2000," Zalesky noted. "Unfortunately, the U.S. has regressed to the rank of ninth in overall beef exports for 2004.
"Until distortions in international cattle and beef markets are addressed comprehensively at a global level, the U.S. should pursue FTAs strategically to move toward these goals," Zalesky emphasized. "Because the Oman FTA represents an important step in the right direction for U.S. cattle and beef producers, R-CALF USA urges Congress to support this agreement."
