US Not Protectionist

[Anonymous]

BEEF NEWS
Canadian Institute: The United States wasn't protectionist about BSE

by Pete Hisey on 3/31/2006 for Meatingplace.com


A study by Canada's Fraser Institute finds that while Canada suffered enormously during the BSE-related closure of U.S. markets to Canadian cattle, the United States wasn't acting in a protectionist manner.

The study suggests that trade has nearly returned to pre-ban conditions, and that Canada should end subsidies and other protections for cattle or risk action by the United States.

The study further indicates Canada lost between $6 billion and $7 billion (Canadian) during the closure, while the United States lost about $5 billion.

It concludes that while trade diversification might be beneficial to the Canadian beef industry, the industry might have difficulty with markets such as Asia. Free access to U.S. and Mexican markets, by comparison, would be more financially rewarding for Canadian interests.

 

[DiamondSCattleCo]

The study suggests that trade has nearly returned to pre-ban conditions, and that Canada should end subsidies and other protections for cattle or risk action by the United States.

See, this is the kind of disinformation I spoke of earlier OT. We have them speaking of subsidies, but I see no cheques in my mail box. Don't be fooled by some reporter spouting rhetoric. Write them an email and ask them to back up their claim. Hell, I see this all the time in Canadian articles, blaming the evil US subsidies in a variety of markets for poor prices, yet the reporter is unable to give any specific examples and when I talk to my friends in the US, they ask where the hell their cheques are.

Rod

 

[flounder]

Mad Cow: A Case Study in Canadian-American Relations
Publication Date: March 2006
Publication Format: Digital Publications

Author(s):
Dr. Alexander Moens, Professor of Political Science, Simon Fraser University
Email: [email protected]
Telephone: (604) 291-4361


Executive Summary: The purpose of this paper is to examine the trade, regulatory, and political relationship between Canada and the United States through the lens of a single case study. On the basis of this case study, the author offers the following recommendations:

The fact that nearly.5 million cattle under 30 months were exported to the US in the second half of 2005 suggests that the Canadian-American trade in cattle and beef will likely return to its high levels before the BSE crisis struck. Therefore, subsidies introduced during the crisis to Canadian cow and calf producers, feedlots, and other incentives given to the meatpacking industry should be phased out quickly, as they may give rise to American trade action or complicate the USDA's re-opening of the border to older cattle. New federal or provincial subsidies to the industry for disposing of "specified risk materials" (i.e., organs such as the brain and spinal cord where the highest concentration of the BSE agent is found) should be avoided for the same reason.

Diversifying Canadian beef exports from North America to Asia is difficult and offers limited opportunities. Under NAFTA, Canada and Mexico both have free access to the American beef market (unlike the non-NAFTA countries which face quotas) and this market will again prove to be the most profitable one for Canada.

From 2003 to 2006, both Canada and the US added regulations on meatpacking and animal feed. Canada's regulations are stricter and produce more risk reduction for BSE than the US regulations. Given that contaminated feed and infected cows originating from Alberta still pose a small risk to free trade, it is important for Canada to keep this edge. Canada should follow this development with confidence-building measures such as joint USDA-Canadian Food Inspection Agency monitoring and inspection of Canadian facilities. Canada should ensure that the compliance rate of its feed mills consistently exceeds US rates.

Canada should also apply its efforts to developing a stronger NAFTA working relationship. Working closely with the USDA on practical harmonization steps is a key interest for Canada. Given the renewed closure of the Japanese market to US exporters after a December 2005 incident in which specified risk materials were found in a US shipment to Japan, the US is also keen to establish a stable regulatory regime.

ISBN/ISSN 1714-6739



FULL TEXT PDF 66 PAGES ;


http://www.fraserinstitute.ca/admin/books/files/MadCow.pdf




The USDA designated Canada as the only country in the world in which BSE was present

and which could continue to export beef products to the United States. This was a

rule-based, pro-free trade action. Canada's science-based and comprehensive approach

Fraser Institute Digital Publication

March 2006

Mad Cow: A Case Study in Canadian-American Relations 48

to controlling the disease from the early 1990s onward was a critical ingredient for the

USDA to reach this decision.


snip..............end


THUS, THE BSE MRR WAS BORN, the legal trading of all strains of TSE globally. JUST one country scratching the others back with more BSe. ALL one has to do is read the BSE GBR risk assessments;



EFSA Scientific Report on the Assessment of the Geographical BSE-Risk (GBR) of Mexico

Adopted July 2004 (Question N° EFSA-Q-2003-083)


[Last updated 08 September 2004]



http://www.efsa.eu.int/science/tse_assessments/gbr_assessments/565/sr04_biohaz02_mexico_report_v2_en1.pdf





EFSA Scientific Report on the Assessment of the Geographical BSE-Risk (GBR) of the United States of America (USA)

Adopted July 2004 (Question N° EFSA-Q-2003-083)


[Last updated 08 September 2004]


http://www.efsa.eu.int/science/tse_assessments/gbr_assessments/573/sr03_biohaz02_usa_report_v2_en1.pdf





EFSA Scientific Report on the Assessment of the Geographical BSE-Risk (GBR) of Canada

Adopted July 2004 (Question N° EFSA-Q-2003-083)


[Last updated 08 September 2004]



http://www.efsa.eu.int/science/tse_assessments/gbr_assessments/564/sr02_biohaz02_canada_report_v2_en1.pdf





TSS

 

[Econ101]

The study suggests that trade has nearly returned to pre-ban conditions, and that Canada should end subsidies and other protections for cattle or risk action by the United States.

See, this is the kind of disinformation I spoke of earlier OT. We have them speaking of subsidies, but I see no cheques in my mail box. Don't be fooled by some reporter spouting rhetoric. Write them an email and ask them to back up their claim. Hell, I see this all the time in Canadian articles, blaming the evil US subsidies in a variety of markets for poor prices, yet the reporter is unable to give any specific examples and when I talk to my friends in the US, they ask where the hell their cheques are.

Rod

Much of the corporate welfare is hidden in this argument. They are the ones who capture the value of subsidies, not the little producers.

 

[Maple Leaf Angus]

The study suggests that trade has nearly returned to pre-ban conditions, and that Canada should end subsidies and other protections for cattle or risk action by the United States.

See, this is the kind of disinformation I spoke of earlier OT. We have them speaking of subsidies, but I see no cheques in my mail box. Don't be fooled by some reporter spouting rhetoric. Write them an email and ask them to back up their claim. Hell, I see this all the time in Canadian articles, blaming the evil US subsidies in a variety of markets for poor prices, yet the reporter is unable to give any specific examples and when I talk to my friends in the US, they ask where the hell their cheques are.

Rod

Much of the corporate welfare is hidden in this argument. They are the ones who capture the value of subsidies, not the little producers.

You are exactly correct. Many of us small cattle producers get nothing. Yet, there is a Holstein heifer dealer not far from us who did lose a lot of money on his stock when the border closed and even though the heifers are a small part of his larger business, he and his son collected 2-3 million between them.

I got nothing because the program said I down-sized. They did not seem to understand that the alternative was to lose more money than I could afford to lose.

 

[Anonymous]

The study suggests that trade has nearly returned to pre-ban conditions, and that Canada should end subsidies and other protections for cattle or risk action by the United States.

See, this is the kind of disinformation I spoke of earlier OT. We have them speaking of subsidies, but I see no cheques in my mail box. Don't be fooled by some reporter spouting rhetoric. Write them an email and ask them to back up their claim. Hell, I see this all the time in Canadian articles, blaming the evil US subsidies in a variety of markets for poor prices, yet the reporter is unable to give any specific examples and when I talk to my friends in the US, they ask where the hell their cheques are.

Rod

From what I've read and heard it appears to me like the Tyson/Cargill crew took most of the subsidy money for their Packer owned captive supply feedlot cattle first- not leaving much for the rest.....Government subsidized captive supply :roll:

 

[greg]

The study suggests that trade has nearly returned to pre-ban conditions, and that Canada should end subsidies and other protections for cattle or risk action by the United States.

See, this is the kind of disinformation I spoke of earlier OT. We have them speaking of subsidies, but I see no cheques in my mail box. Don't be fooled by some reporter spouting rhetoric. Write them an email and ask them to back up their claim. Hell, I see this all the time in Canadian articles, blaming the evil US subsidies in a variety of markets for poor prices, yet the reporter is unable to give any specific examples and when I talk to my friends in the US, they ask where the hell their cheques are.

Rod

From what I've read and heard it appears to me like the Tyson/Cargill crew took most of the subsidy money for their Packer owned captive supply feedlot cattle first- not leaving much for the rest.....Government subsidized captive supply :roll:

I'll probably get my butt chewed for this one but yup,thats what happened.

 

[Econ101]

See, this is the kind of disinformation I spoke of earlier OT. We have them speaking of subsidies, but I see no cheques in my mail box. Don't be fooled by some reporter spouting rhetoric. Write them an email and ask them to back up their claim. Hell, I see this all the time in Canadian articles, blaming the evil US subsidies in a variety of markets for poor prices, yet the reporter is unable to give any specific examples and when I talk to my friends in the US, they ask where the hell their cheques are.

Rod

From what I've read and heard it appears to me like the Tyson/Cargill crew took most of the subsidy money for their Packer owned captive supply feedlot cattle first- not leaving much for the rest.....Government subsidized captive supply :roll:

I'll probably get my butt chewed for this one but yup,thats what happened.

And then a nice little Alberta govt. report to throw the dirt in the grave on that question. Seems like your govt. is about on par with ours, Greg. My condolences. It seems the incest (no sexual intent here, just a relationship analogy) will continue until it is recognized by more people. It sure is hard to turn in your own "family" members.

 

[DiamondSCattleCo]

struck. Therefore, subsidies introduced during the crisis to Canadian cow and calf producers, feedlots, and other incentives given to the meatpacking industry should be phased out quickly, as they may give rise to American trade action or complicate the USDA's re-opening of the border to older cattle.

Hmmmmm, again, no specifics. I'll look through the PDF linked into the article, however I can think of 3 programs that were enacted to combat the BSE financial crisis and all 3 were shut down as soon as the border opened to UTM cattle. There are NO producer subsidies currently available to protect us from the disastrous CULL market right now.

As a side note, Simon Fraser is not exactly known for their well researched or well studied professors. Not to say this report won't be valuable, and I plan on looking it over, but I suspect the writer was probably toking up while writing it.

Rod

 

[DiamondSCattleCo]

From what I've read and heard it appears to me like the Tyson/Cargill crew took most of the subsidy money for their Packer owned captive supply feedlot cattle first- not leaving much for the rest.....Government subsidized captive supply :roll:

I can't comment on that, but something people need to bear in mind is the wording of many of these subsidies, both in the US and Canada.

"Today the grand and glorious government has made AVAILABLE 20 Trillion dollars to help out its starving producers."

Every single subsidy that I've ever seen has the words MADE AVAILABLE. This doesn't mean they actually PAID or ARE GOING TO pay that much money out. A few years back, the Canadian Taxpayers Association studied some of the grain subsidies that were being enacted. They found that in some of the programs, of the AVAILABLE money, only 30% was ever paid out, and of this 30%, less that 50% of the money actually made it to producers. The rest got buried in red tape.

For an interesting study, pick a couple subsidy announcements, and the dollars made available to those subsidies. Pick any year. Then find the year end accounting statements and find that program and the dollars charged to it. I'd like to see people on both sides of the border do this with their own governments for their own curiosities sake. You may find the numbers interesting.

Rod

 

[cowzilla]

Could somebody give me a list of these subsidies We got . It would appear that I didn't recieve mine and I could sure use the Cash :!: Oh by the way that goverment LOAN cow calf guys got last spring ( $100 per HD) got a Bill in the mail last week they want it back NOW That Prof. from Simon Fraser is being a little too general in his statements. Perhaps if he had done some grassroots research he would have heard the rest of the story. Our government got a lot of good PR out of these Loans and misled a lot of Urban Folks into thinking we got a free handout.Of cource it was an ELECTION YEAR WASN'T IT :wink:

 

[cowzilla]

Think I'll go back to the calving barn and cool off :roll:

 

[Manitoba_Rancher]

I agree Cowzilla. This damn CIAS program is only for the government buracrats