WINNIPEG – If the United States does not act within days to open the border to Canadian beef, Canada should toughen its animal industry regulations and try to break back into Mexican and Asian markets, a senior cattle industry official says.
Such Canadian action to have different rules than the Americans could be another impediment to cross-border trade.
Ted Haney, president of the Canadian Beef Export Federation, told reporters July 9 that Canada cannot continue to rely primarily on the American border opening to relieve the pile of fat cattle marooned in Canada since borders closed May 20 after a case of bovine spongiform encephalopathy was discovered in Alberta.
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He came as close as a Canadian cattle industry representative normally comes to accusing the Americans of using politics and economics to keep the border closed.
“We all want to work in conjunction with the United States, continuing to have harmonized programs with respect to BSE – surveillance and control, feeding and processing techniques – but further significant delays in the United States in opening their market would force the Canadian hand to work in advance of any changes to American regulations because our imperative to trade is ultimate,” said Haney.
“We must take certain actions to gain access to other key markets in Mexico and Asia.”
The cattle industry historically has been adamant that Canada keep its industry rules the same as in the U.S. to maintain access to a $4 billion annual beef and live cattle American market. Last week, after being part of an industry delegation that met with federal and provincial agriculture ministers during their annual summer meeting, Haney expressed frustration with the American delay.
“I think we’re looking at days and maximum, weeks and if we come to Aug. 1, our need to trade will have superseded our need to harmonize,” said the beef federation president.
There are fears that tougher rules on feeding, feed ingredients and BSE surveillance in Canada would keep $500 million worth of American cattle and beef out of Canada until the U.S. toughened its rules. That could deepen U.S. resolve not to reopen the border to Canadian product.
A federal official has likened it to “having a door closed and padlocked on both sides.”
Haney’s comments were a signal of growing industry frustration with American delays.
“The science component really has been completed, the investigations have been done, the delivery of information has been completed,” he said. “Any further delays are based on other concerns.”
He said those other concerns have not been laid out for Canadians but obviously involve trade with the Japanese.
Last week, U.S. agriculture secretary Ann Veneman acknowledged Canadian beef is safe and the U.S. National Cattlemen’s Beef Association called for a reopened border.
Cattle industry leaders also warned ministers last week that they will soon have to design a new BSE compensation package for sectors not covered by the first plan.
It would involve compensation for cow-calf operators with calves ready to market into a glutted marketplace in autumn, and it would compensate backgrounders.
