March 5, 2008

USDA to proceed beef trade talks with Japan after Smithfield ban

The USDA said the recent mistake in Smithfield's beef shipment to Japan would not impede efforts to resume trade with the Asian country.

A 20-tonne beef shipment to Japan mistakenly contained additional 25 boxes of meat intended for distribution in the US. Smithfield Foods Inc., supplier of the beef in question, has been temporarily banned from further shipment to Japan.

USDA spokesman Keith Williams said talks with Japan would proceed under a broader trading regimen that Japanese customers have asked for.

In December 2003, beef exports from the US were banned by Japan following a case of mad cow disease in the Washington state.

Trade resumed in 2006, yet Japan still suspended shipments from plants that violate the bilateral agreement or are without required documentation.

Japan currently accepts US beef from cattle aged 20 months or younger. The 25 boxes, which Japanese officials estimated was about 0.7 tonnes, had meat that came from animals younger than 30 months, according to USDA.

US officials were hoping to boost exports significantly last May when the World Organization for Animal Health gave a "controlled risk" status for US beef safety.

The US expected South Korea, Japan, China and other markets to relax import restrictions on US beef.

However, US Trade Representative Susan Schwab told Reuters in an interview last week that fully reopening beef markets is taking longer than expected.