August 20, 2009

US beef exporters can't wait for more Taiwan market share

US beef exporters are pressing the Office of the US Trade Representative (USTR) to demand increased market access in Taiwan.

This development is slowing the process of scheduling the next bilateral meeting under the US-Taiwan Trade and Investment Framework Agreement (TIFA) because the USTR wants to announce the beef deal at the meeting, according to observers.

The two governments are expected to agree to complete market access for US beef exports. However, industry groups in both countries are expected to agree to a separate deal, which will be monitored by their respective government officials. The deal will grant less-than-full market access to US beef, similar to an arrangement concluded in the US-South Korea free trade agreement.

Therefore, this separate deal has become a thorn to the US beef industry, as they want market access for boneless, bone-in and "variety" cuts of beef from cows under 30 months of age. But sources said the US industry was previously agreeable to only including boneless cuts in the separate industry agreement.

Still, an industry source said the USTR was reluctant to take up the new demands from US exporters and that Taiwan's government does not want to accommodate new beef demands.

The government-to-government deal would require that Taiwan liberalises its food safety regulations to comply with OIE's ruling that characterises the US as a "controlled risk" country for mad cow disease, meaning that all meat cuts from US cattle of all ages should, in theory, be allowed into the market, sources said.