Food safety and animal health trade barriers and restrictions maintained by foreign countries stop billions of dollars worth of US beef exports, according to a new report released this week by the US International Trade Commission.

 

The ITC, in looking at US beef exports from 2004 through 2007, said "animal health and food safety regulations in importing countries reduced US beef exports by US$2.5 billion to US$3.1 billion per year."

 

The most trade-damaging restrictions are in Japan and South Korea, countries that do import US beef, but exercise tariffs and maintain restrictions due to the discovery of bovine spongiform encephalopathy (BSE), or mad-cow disease in the US.

 

"Restrictions imposed by Japan and Korea on imports of US beef have resulted in significant losses in export sales to the industry," according to the ITC report.

 

"During 2004-07, these two countries accounted for about 86 percent of the lost export sales caused by BSE-related restrictions and of potential export gains if tariffs and TRQs were removed."

 

BSE isn't the basis for all impediments to US beef exports, and tariffs and quotas are a major source trade loss on their own, the ITC said.

 

"Even if all BSE-related restrictions were removed, US beef exports would continue to face significant tariff and tariff-rate quota restrictions," the report said. "Annual US beef exports would be expected to increase by about US$1.4 billion - US$1.7 billion if global tariffs and TRQs on imports of US beef were removed."

 

China's closure of its beef market has also hurt US beef producers, the report said, adding that China is one of the largest potential growth markets for US beef.

 

China banned US beef and offal in late 2003 after a BSE case was discovered in the US. After four years of negotiations, China offered to allow in certain cuts of beef from cattle under 30-months of age, but the US has maintained that only a full market opening based on OIE standards is acceptable.

 

Before the ban, the US accounted for 52 percent by value and 37 percent by quantity of China's import market, totalling US$27 million in 2003.

 

"Unjustified, unscientific barriers to US beef have severely limited US beef exports," Senate Finance Committee Chairman Max Baucus (D-MT) said on Tuesday (October 7, 2008). "Nearly US$11 billion of lost exports is an astonishing and unacceptable figure."