June 30, 2006

Canada's lifting of ban on US beef seen as a political trade-off

If US producers are suspicious of Canada's intentions after it lifted its ban on US beef and cattle of all ages, it is right to do so, livestock analysts said. Canada probably wants its gesture to be repaid in kind. 

Canada is probably prompting the US to open the border to more Canadian products, Jim Robb, an agriculture economist with Livestock Marketing Information Centre said.

However, doing so would not be easy. The USDA was threatened with lawsuits when it tried to allow imports from Canada of older cattle and of beef from older cattle.

The US currently only allows imports of Canadian cattle under 30 months of age and beef from cattle under 30 months.

Despite the lifting of the ban, analysts said Thursday's action should not result in any noticeable changes in US beef exports to Canada.

Early in the year, Canada was the second largest importer of US beef, next to Mexico. During that period, Canada purchased 24,000 tonnes of US beef and beef variety meats, according to USDA data compiled by the US Meat Export Federation.