Officials pave way to resume U.S.-Japan beef trade

Resumption deal hinges on plant inspections

By Jeff Caldwell

A framework agreement has been reached in the months-long beef trade impasse between the U.S. and Japan, clearing the way for trade resumption as early as next month.

Today's deal calls for the inspection of 35 U.S. beef packing plants by Japanese officials before trade can resume. Japanese Ministry of Agriculture officials said the process will take around one month, with July 21 the target date for trade to continue. Similar to the recent ill-fated deal hatched between South Korea and the U.S. for trade resumption, all 35 plants must meet the Japanese inspectors' criteria to earn the trade go-ahead.

"Ultimately, it is our goal to complete the Japanese audits with all plants that have met U.S. requirements to export beef to Japan being approved to do so at the same time," said U.S. Secretary of Agriculture Mike Johanns this morning. "I cannot emphasize strongly enough the importance of Japan recognizing the U.S. food safety inspection system as a single, effective system and acting accordingly in resuming trade."

While the announcement was largely considered a victory by the Bush administration, the tone was reserved at the U.S. Department of Agriculture. Secretary of Agriculture said while it's "another step toward the resumption of beef trade with Japan," the issue is not finished.

"I will not be satisfied until U.S. beef is once again accepted into the Japanese market," Johanns said. "Japan has been conducting an exhaustive examination to confirm the safety of U.S. beef and these audits must constitute the final step. We have instituted numerous changes in our system, answered every question posed by Japan and delivered an abundance of factual, science-based assurances that U.S. beef is safe.

"It is time for beef trade to resume with Japan."

The trade resumption announcement came the same day as an announcement was planned by U.S. Sens. Pat Roberts, R-KS and Kent Conrad, D-ND, to "unveil bipartisan legislation...to encourage Japan to open its domestic market to American beef." The bill would require the U.S. Secretary of the Treasury to "impose tariffs on Japanese exports if Japan does not re-open its domestic market to U.S.-produced beef by August 31."

Roberts called the announcement a step forward, but "Japan must make good on its commitment," he said. "Until there is a specific date for actual trade to resume, and product is at port in Japan, it's not a done deal. We have been through this before and need to demonstrate to the Japanese that U.S. beef is safe."

This is on top of other proposed Senate legislation, S.3364, proposed by Nebraska Sen. Ben Nelson, which would simply ban Japanese beef until that nation accepts U.S. beef.

National Cattlemen's Beef Association Chief Executive Officer Terry Stokes was also reserved. In statement he said cattle producers were appreciative of the efforts, "but after years of empty promises and continued delays, U.S. beef producers remain skeptical of Japan's dependability as a trading partner."

Stokes said NCBA will continue to push for science-based standards in trade with Japan.

"The United States meets or exceeds all guidelines established by the World Organization for Animal Health (OIE) to freely export beef and beef products from cattle aged 30 months and less. Japan's requirement of boneless beef from cattle aged 20 months and less is an artificial and unscientific barrier to trade," Stokes said.

"While we are hopeful these issues can be worked out over time, we know from experience that Japan has become an unreliable trading partner. Our cattlemen have paid a tremendous price for the continued delays by Japanese officials to resume beef trade based on scientifically-recognized principles."

Because of Japan's unreliability, Stokes said NCBA's Executive Committee voted to support Congressional legislation against Japan and is supporting the Roberts-Conrad bill.

Despite reservations voiced among federal officials like Johanns about the forthcoming resumption of beef trade between the U.S. and Japan, counterparts in Japan seemed more optimistic about the process, according to reports.

"The U.S. and Japan have come to a good agreement regarding the resumption of imports," a Japanese foreign ministry spokesman said today, according to reports. "It is only natural for the two biggest nations to resume imports, and we are confident that the U.S. will not repeat what happened in January."

Jeff Caldwell can be reached by phone at 515-280-5405 or by e-mail at jcaldwell@mchsi.com.

Date: 6/21/06

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