WINNIPEG – A 10-day-old opening in the American border to Canadian bone-in beef, liver and a few other beef products was closed May 4.
The United States Department of Agriculture settled a legal action with the Montana based Ranchers-Cattlemen Action Legal Fund United Stock Growers of America by rescinding its April 19 move that had allowed additional Canadian beef products to enter the U.S.
The list of importable Canadian beef had been expanded in what appeared to be a reciprocal measure with Canadian authorities, who had also expanded their eligible U.S. products list in April.
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R-CALF, on behalf of its 8,700 members, protested the U.S. government’s move, took it to court and stopped the imports with an order from a Billings, Montana, district court judge April 26.
“It is troubling to the court how USDA could believe it is appropriate procedure to authorize all imports of bovine meat products from Canada, through the April 19, 2004, memorandum, at the very same time when USDA is in the middle of a rule making to determine whether to take such a step,” judge Richard Cebull wrote in his decision.
The Canadian fed cattle market was thrown into confusion when some American authorities interpreted the judge’s order to include not only the April 19 beef material, but also trim, a major component of what Canada had been shipping to the U.S. since last August. The confusion also held up some of Canada’s beef exports to Mexico
The confusion was cleared up May 6, trim shipments resumed and fed cattle prices rebounded.
“It was just a matter of clarification – the clarification took a while, but it is positive,” Cindy McCreath, spokesperson for the Canadian Cattlemen’s Association, told Reuters.
Ed Lloyd of USDA said as part of settling the dispute with R-CALF, the products that were allowed Aug. 8 could resume export to the U.S. but any further widening of exports would have to wait until the U.S. government’s rule-making process regarding border reopening had run its course.
“We acknowledge that part of our rule-making policies were probably skipped to help get the border opened and that shouldn’t have occurred,” Lloyd said of the April 19 order.
“In settling with R-CALF we decided to put more resources in finishing the final rule rather than get tied up fighting with R-CALF on another front. The (secretary of agriculture) and the president have both said they want this done as soon as possible. We want to devote full attention to the rule-making process,” said Lloyd.
That process received more than 1,500 comments from U.S. and Canadian interested parties about when and what Canadian beef products should be allowed into the U.S.
USDA officials said they are not required to respond to all comments nor will they. It is widely expected that the new rules for Canadian beef imports will be allowed beginning this summer.
Bill Bullard, head of R-CALF, said his group was planning a legal challenge to those new rules for the import of Canadian beef when the USDA further opened the border.
“We were already working with our lawyers so while it took us by surprise, we were well prepared to argue for the restraining order and if need be an injunction until the rule-making process was complete.”
Bullard said his organization believes Canada’s federal meat hygiene policies are substandard to American rules and “fail on science based system compared to our American system. As such Canadian beef should not be allowed into the U.S.”
Bullard would not give specific examples of Canadian failings.
He said the group plans to go ahead with its challenge to the new rules and said “even if Canadian systems are made to mirror our own, there is still the problem of Canadian cattle flooding our markets and lowering prices.”
But some Canadian analysts say Canadian cattle won’t flood the U.S. market.
The Canadian surplus of live cattle for export is expected to peak at about 750,000 animals by this November, according to the Canadian Cattlemen’s Association. That amount is the equivalent of only one week’s U.S. beef slaughter.
Bullard said despite the North American Free Trade and World Trade Organization rules against using economic arguments to restrict trade, “the effect on our cattle markets down here will form the basis for part of our argument against allowing Canadian cattle in.”
Under the USDA’s new agreement with R-CALF, Canadian bone-in beef products will not be allowed to enter the U.S. until five days after the rule-making process is completed. This is designed to allow R-CALF to respond with a legal challenge, should it choose, to the new rules once they are announced.
