News Update

News Update
July 28, 2006

USDA Withdraws Rule Allowing Older Canadian Cattle

The U.S. Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) withdrew a proposed rule that would have allowed Canadian cattle imports more than 30 months of age, meatingplace.com reported.

According to the article, the proposed rule may be rewritten or possibly resubmitted once the investigation of Canada’s latest bovine spongiform encephalopathy (BSE) case concludes.

Doha Talks Suspended

Trade talks at the World Trade Organization’s (WTO’s) G-6 meeting in Geneva flatlined earlier this week. The suspension of Doha Round trade talks could last for months, some warn, and carry costly consequences for U.S. ag goods.

“(The suspension) could last even longer than just a few months,” said Parr Rosson, Extension economist and director of the Center for North American Studies. “This could lead to some real pressure being put on the European Union (EU), Japan and others to rethink market access into these countries.”

In a Texas A&M University release, Rosson said U.S. officials were hoping to see tariffs cut by at least 54%, however, EU representatives were willing to only go 48%. “Many sensitive products, such as beef, would still have 61% tariffs even after reduction for the 80% tariffs currently in place,” Rosson said.

The potential for more litigation in the WTO dispute settlement process exists, he said, much like what happened in the cotton case where U.S. subsidies were found to create unfair trade.

EU export subsidies of $2 billion annually “will limit trade opportunities for grains, beef and poultry,” Rosson added.

According to the TAMU release, U.S. Secretary of Agriculture Mike Johanns said Monday the 80% tariff for high-quality beef in the U.S. blocks the market.

Rosson said the U.S. had been clear that the offer of a 60% reduction in trade-distorting domestic support “could only be justified if the EU, Japan and developing countries, mainly G-20 (a group consisting of 19 of the world’s largest economies with the EU), made substantial reductions in agriculture tariffs.

“This did not happen, therefore the parties were so far apart that [WTO Director General Pascal] Lamy thought a suspension in negotiations was in order,” Rosson said.

For the full release, visit http://agnews.tamu.edu/dailynews/stories/AGEC/Jul2506a.htm.

Livestock, Dairy and Poultry Outlook Released

U.S. Department of Agriculture’s (USDA’s) Economic Research Service (ERS) has released its regular outlook for timely livestock, dairy and poultry information focusing on current and forecast production, price and trade statistics for each sector.

The ERS outlook contains key livestock and animal product data, with supporting tables available later in the month. Visit www.ers.usda.gov/Publications/LDP/ for more information.

ERS has also released its DatelinERS newsletter, offering concise summaries of ERS reports and events with links to areas within our Web site. Access the newsletter at www.ers.usda.gov/News/.

— compiled by Crystal Albers, associate editor, Angus Productions Inc.