An American trade review of the North American beef industry has come out in Canada’s favor.
Released last week, the report said United States beef and cattle imports are in balance. While Canada accounts for the majority of American beef imports, it does not disrupt the market.
“The NAFTA does not appear to have resulted in measurable changes in the U.S.-Canada trade in live cattle or beef,” said an executive summary released by the United States International Trade Commission.
The report was prepared in response to a congressional request to study the impacts of free trade agreements on the American beef industry. Some American beef producers charge the North American Free Trade Agreement opened up the floodgates and put their industry in jeopardy because of high numbers of Canadian cattle and beef entering their markets.
Read Also
Dry summer conditions can lead to poor water quality for livestock
Drought conditions in the Prairies has led to an decrease in water quality, and producers are being advised to closely monitor water quality for their animals.
The study measured trade within Canada, Mexico and the U.S. since the signing of NAFTA and the Uruguay Round of the world trade agreement. The agreements allow live animals and beef to move duty free.
There was also an assessment to see if beef or live cattle were coming into the U.S. from other countries via Canada or Mexico. The study said there was no evidence of transshipments from either country.
The U.S. beef trade is a $48 billion (Cdn) industry. It exported $3.3 billion worth of beef or seven percent of its production in 1996. Total beef imports were worth $1.5 billion or seven percent of the national consumption.
The U.S. imported 1.3 million slaughter cattle from Canada in 1996. Imports of fresh, chilled or frozen beef were 580 million pounds. So far this year, live exports of feeder and finished cattle are down but beef exports are climbing.
The commission also looked at the Mexican industry, which was far more volatile because of devaluation of the peso.
Between 1992-96, U.S. imports of Mexican slaughter cattle amounted to 0.5 percent of the U.S. kill. Imports of Mexican beef accounted for less than one percent of American imports.
The Canadian Cattlemen’s Association views the summary as good news. These studies tend to be descriptive reports of the industry rather than one which lays blame, said Dennis Laycraft, executive vice-president of the cattlemen’s association. It showed more effects from the Canada-U.S free trade agreement than any additional impacts when Mexico signed on.
