November 1, 2007

  

US beef trade with China hinges on interpretation of 'controlled risk'

 

 

China and the US continue to wrangle over US beef exports, with a senior USDA official saying that the different interpretations of World Animal Health Organization (OIE) guidelines in both countries is causing an impasse in negotiations.

 

The US has been pressing trade partners who formerly banned US beef on account of mad cow disease to lift their bans after the OIE reclassified US beef in the 'controlled risk' category. The reclassification was one reason countries like South Korea, have partially lifted bans, albeit with restrictions.

 

The US argues that the reclassification meant that all beef regardless of the age of the cattle would be safe for human consumption, provided specified risk materials (SRMs) have been removed.

 

The SRMs that must be removed differs for meat from cattle under 30 months compared to older cattle under the OIE guidelines.

 

China said it is unwilling to accept beef and certain organ meats from cattle older than 30 months of age.

 

The US and China have a fundamental difference of opinion regarding what the OIE conditions for trade mean, Deputy Undersecretary of Agriculture for Farm and Foreign Agricultural Services Ellen Terpstra said at a meeting with the US Meat Export Federation. 

 

To resolve the issues, the US has suggested that both China and the US "clarify" with experts what the OIE guidelines mean.

 

Speaking to the same group, Acting US Agriculture Secretary Chuck reiterated the Administration's commitment to the obtaining full market access for US beef, which he said will require a "focused, patient and persistent effort to resolve at the government to government level."

 

However, efforts so far to open markets have paid off. Conner pointed out that for the first eight months of this year, US beef exports have been up 17 percent.

 

Terpstra said the year-to-date figure for 2007 is US$4.7 billion in exports, up from US$3.9 billion for the comparable period a year earlier.

 

US beef exports was US$6 billion last year, lower than the US$7.5 billion in 2003, before the country reported its first case of mad cow disease.