Canada must stop its protectionist practices if it wants to be a player in the North American cattle industry, according to officials inside the United States’ largest beef lobby.
“Canadians need to step forward and say they recognize that we are in a North American market and the U.S. is the key to their market,” said Dana Hauck, chair of the international markets committee for the U.S.-based National Cattlemen’s Beef Association.
That comment summarized a news conference following a trade summit in Denver, Colorado, between Canadian and American beef industry officials Oct. 19.
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Officials from the Canadian Cattlemen’s Association and NCBA, as well as state cattle and government representatives, met to hash out trade differences that boiled over this fall.
The Americans said they prefer negotiations to waving a big stick, but NCBA president Clark Willingham made it clear Canada must bend on a number of trade grievances.
Bring down prices
The NCBA is aware Canadian imports make up only four percent of total U.S. cattle kill, but it argues a million fewer Canadian cattle in American plants would make a difference to producers who are struggling with low commodity prices in every sector.
USDA-generated figures said the U.S. produced 25.4 billion pounds of beef and exported 2.1 billion lb. in 1997. The U.S. consumed 25.6 billion lb. and imported 2.3 billion lb.
There is a strong contingent of American producers who say that if Canada dropped some of its technical barriers, the beef industry would be better off on both sides of the border.
Willingham said Canadian exporters find the U.S. slaughter market favorable because they are allowed to sell it as U.S. beef.
The debate about country-of-origin labeling will continue.
Congress approved a study Oct. 21 on the benefits and costs of meat labeling, as well as the feasibility of rescinding the USDA grade for imported beef.
Expand market
Beyond arguments about labeling and health, Willingham said the North American industry must increase worldwide demand for beef that would improve the market for everyone. The summit proposed the two countries’ beef export federations work together to promote generic beef overseas.
Another contentious issue at the summit is animal health regulations.
The two organizations agreed to revitalize a joint animal health committee to deal with questions about disease and inspection.
In addition, both sides agree there needs to be some standardization of regulations for animal drugs.
Canadian Cattlemen’s Association president Ben Thorlakson said in a later interview that the system works well now. Canada has strict rules about drug use. In some cases pharmaceuticals are used differently but this is perceived by the Americans to be a lower standard, which is not the case, he said.
The two groups also want government to communicate better with producers about health inspection standards.
“The USDA has inspected (Canadian) slaughter plants and found them to be equivalent, but that wasn’t communicated to our producers,” said Willingham.
