February 2, 2007

 

US insists on ability to expand beef exports to Japan

 

 

The Bush administration is insisting Japan comply with US wishes to allow for an increase in the number of beef producers here that can export to Japan, according to a January letter sent to Japanese Agriculture Minister Toshikatsu Matsuoka.

 

The letter, a copy of which was obtained by Dow Jones Newswires, warns that the US "intention is to approve additional plants for shipment" as soon as an agreed upon six-month moratorium ended. The moratorium on additional US plants allowed to ship beef to Japan should have ended on Jan 27, according to US calculations.

 

US Department of Agriculture Secretary Mike Johanns and US Trade Representative Susan Schwab signed the letter to Matsuoka that was dated Jan 19.

 

Japanese officials have insisted they be able to take as much time as they need to review the last six months of beef trade before agreeing to allow more imports of US beef.

 

In sharp contrast, the US is asking that Japan do its review quickly--within 1 month--and allow beef trade to increase before that review is complete.

 

"As we move toward the end of our voluntary moratorium on listing new plants, we understand that you are conducting your own review of the first 6 months of trade since July 27, 2006," Johanns and Schwab said in the letter. "We do not share your interpretation that these two periods are related ..."

 

The USDA the agency responsible for approving US beef companies for export to Japan--states on its website that Jan 27 is the date it will begin responses to requests for approval. The USDA has not approved any more companies for export, though, according to the website.

 

If the US attempted to do so without Japan's approval, it would be "troubling," said a Japanese government official who asked not to be named.

 

The USDA lists 35 plants, many of them owned by large companies such as Cargill, Tyson Foods, and Smithfield Foods, as eligible for export to Japan. Those plants were the ones Japan approved before the country opened up to US beef on July 27, 2006.

 

Japan's Matsuoka, during a visit to the US on Jan 11, announced the country wants to conduct another audit of US beef-producing plants before it considers allowing more trade. Johanns and Schwab, in the letter, stressed they do not agree that "a second audit as part of your review will now be needed prior to any new plant approvals".