Trade action flawed, says U.S. analyst

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Published: November 18, 1999

GREAT FALLS, Mont. – North American cattle producers won’t get higher prices by fighting amongst themselves, says a Montana State University trade analyst.

Greg Brester said trade actions launched by the United States against Canadian live exports and by Mexico against American beef packers destroy credibility in overseas markets.

Japan will question why it should allow more beef imports if there are continued trade disputes in North America, he said.

“We haven’t set ourselves up very well.”

He was sharply critical of the Ranchers-Cattlemen’s Action Legal Fund, formed by a group of Montana producers who won an anti-dumping duty against live Canadian cattle exports.

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That duty is expected to end later this month as a United States trade panel ruled against the tariff.

Brester said the entire trade action was flawed.

“It is a desperate attempt to do something. It is not science-based.”

He admitted times are tough for American farmers, but said these kinds of trade actions won’t achieve better prices.

Tariffs don’t work, he added, because the money goes to general revenue and not to producers.

For further information from Montana State University’s Trade Research Centre, contact www.trc.montana.edu.

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