NCBA Questions Border Opening

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NCBA Executive Committee Takes Action Regarding the Re-Opening of the Canadian Border
A Letter to Our Members
Two days ago (January 4), USDA published a final rule that would reopen the Canadian border. NCBA has heard from many members expressing concern and asking for clarification on the rule's implementation. NCBA members have a number of serious concerns about this rule, specifically in regard to the following:

. The economic impact on cattle producers resulting from resuming trade with Canada without having reopened other export markets, specifically Japan.
. The compliance of the Canadian beef industry with its feed ban.
. The economic implications of importing meat from Canadian cattle older than 30 months of age.
. The prevalence of BSE in Canada given the announcement on January 2 of a second case of BSE, which is the third case of known Canadian origin.

First and foremost, NCBA is committed to responding to the concerns of cattle producers to assure increased profit opportunities in both the short and long term. This rule is in a period of congressional review and will not become effective until March 7. This means the industry has time to take action on its concerns.

NCBA has four goals in addressing these trade issues:
. Ensure trade is resumed in a manner that prevents economic harm to cattle producers.
. Regain the loss in value of exports to our producers that occurred after the occurrence of BSE on December 23, 2003($175 per fed animal), through normalization of trade and create a foundation for growth in our export markets.
. Protect the health of our cattle herd.
. Maintain consumer confidence in the safety and quality of U.S. beef.

Below are the member-directed action steps NCBA is immediately initiating to give producers the facts they need to evaluate this rule. A decision by NCBA members on whether to delay or move forward on implementation of the rule will occur at the Cattle Industry Annual Convention, February 2-5, in San Antonio. NCBA feels very strongly that our members concerns be addressed and all the information be gathered in time for discussion and debate in San Antonio.

Based upon these concerns, the NCBA Executive Committee approved the following action steps:

1. Insist that by March 7 trade be re-established with Japan and South Korea and expanded in Mexico through negotiations between the highest level of government officials or further action will be taken.
2. NCBA will send a trade team of its members to Canada on a fact-finding mission to:
. Identify the Canadian cattle that would qualify for export under the USDA rule and determine the potential economic impact on cattle producers.
. Inspect feed manufacturers and demand Canadian government officials provide a detailed assessment of feed ban compliance.
. Inspect border crossings to verify how cattle will be inspected, identified, have their age determined and be approved for entry into the United States.
. Verify Canadian compliance with BSE firewalls.
. Clearly determine the blue tongue and anaplasmosis requirements to export feeder cattle to Canada to ensure harmonization of trade.
. Evaluate Canada's BSE testing and surveillance program and review all the findings around the recent BSE cases.
. Address other concerns that may be raised by members.

This trade team will visit Canada the week of January 17 and present its complete report to NCBA membership at the annual meeting in San Antonio as a basis for establishing or changing policy regarding trade with Canada.

3. Request an FDA audit of Canada's compliance with its feed ban.
4. Demand that the U.S. not import beef from Canadian cattle older than 30 months of age to prevent a trade imbalance that discriminates against U.S. cow-calf producers.
5. Insist USDA clarify the Canadian rule regarding the importation of heifers, age verification, procedures for importation of live cattle, and other issues.
6. Insist on the creation of an international commission from major beef producing and beef consuming countries to establish a science-based protocol for normalization of trade for BSE.
7. Evaluate USDA's economic analysis of trade with Canada.
8. Immediately mobilize our members and state affiliates to notify their congressmen, senators, and the Administration of these concerns and action steps.
9. Meet with senior White House officials to strongly communicate these action steps, the concerns of our cattlemen about the economic harm that will occur from the imbalance of trade between exports and imports, and the sense of urgency to achieve results.

Now more than ever NCBA needs to hear from you. This issue will be covered in the January and February Beef Business Bulletins and be addressed at the annual membership meeting during the Cattle Industry Annual Convention in San Antonio. You can be assured that it also will be debated from the opening gavel to the final vote - which rests with you. And, while we would love to see everyone in San Antonio, we realize not everyone can make the trip. If you can't attend, we urge you to contact your state affiliate and let them know your views. Keep in mind that all policy passed by the Board of Directors and the membership at the annual convention is then ratified or overturned by the membership in a mail ballot. That ballot will be included with the February issue of Beef Business Bulletin, which will be mailed Feb. 17.

What action NCBA ultimately takes on handling the reopening of the Canadian border will be decided by you. Your decisions will become the marching orders for your organization.

Your industry is calling you into action. Don't let an issue this important to your future pass without being engaged in the process.

Action Steps Your Industry Needs You to Take
. Arm yourself with the facts and information.
. Contact your members of Congress and share your concerns. Sample letters to use in this effort are attached below.
. Provide feedback and thoughts to NCBA leadership and the trade team traveling to Canada by calling 1-866-BEEF-USA or contact your state cattlemen's organization.
. Engage in the policy making process by attending the Membership Meeting at Convention and/or participating in the mail-in ballot.

For more information on international trade, what you can do and events taking place at convention please go to the NCBA Web site at http://www.beefusa.org or call 1-866- BEEF- USA.
 

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