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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.
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