Cattlemen's Capitol Concerns: July 29, 2004

Cattlemen's Capitol Concerns

July 29, 2004

The CCC is a weekly report from Washington D.C. giving an up-to-date summary of top policy initiatives concerning the cattle industry; direct from the National Cattlemen’s Beef Association (NCBA).

Tonto Forest Grazing:  USDA’s Natural Resources Conservation Service (NRCS) announced this week a pilot program for the use of Environmental Quality Incentives Program (EQIP) funding to support sustainable grazing on public lands in the Tonto National Forest.  Mike Somerville, Arizona state conservationist for the NRCS, announced the program during a visit to the Arizona Cattle Growers’ Association meeting in Prescott, Ariz. He said that eventually as much as $1.5 million for 30 ranching operations may be available through the pilot program.  The Southwest has suffered ongoing periods of drought, and EQIP can be an important tool to help manage resources and sustain ranching operations during this time.  In coordination with the Gila County Cattlegrowers, the Arizona Cattle Growers, NCBA, and the PLC, the NRCS will administer the pilot program with the goal of preserving sustainable grazing in the Tonto National Forest. 

International Trade Talks: World Trade Organization (WTO) talks continue this week in Geneva, in an ongoing effort to reach an agreement by Chairman Oshima's deadline of Friday, July 30th. These multilateral negotiations are the best way for U.S. cattle producers to expand export market access opportunities for U.S. beef and beef products. NCBA hopes that the negotiators can come to some agreement on a framework for agriculture and other areas of negotiations, to move this process forward.  The U.S. beef industry has the most to gain at the WTO, and any delay in liberalizing trade around the world is disappointing. NCBA has expressed some concerns with the direction of some of the negotiations, which we are watching closely and on which we are providing feedback to the U.S. trade team.  These concerns include how special products will be treated as well as how special and differential treatment status will be determined for developing countries.  Expectations are that there will be one revised text issued by Chairman Oshima which countries will have to accept or reject.  If accepted, this text will serve as the basis for a final round of negotiations on the agricultural agreement at a later date.  We are hopeful that real progress can be made on the framework in the area of market access, which is one of the more difficult negotiations.  Increased market access via tariff reduction is the core mechanism by which U.S. beef producers can better their position in the global marketplace. 

Dominican Republic Trade:  U.S. trade officials have confirmed that the Dominican Republic will enter into a free trade agreement (FTA) with the U.S. and five countries of Central America on Thursday, August 5, 2004, in Washington, D.C. The trade ministers from each country will be together to sign the agreement. Negotiations on this FTA were launched in January 2004, and ended in March.  NCBA was present at the signing of the U.S.-Central American FTA (CAFTA) in late May, and cattlemen will be pleased with the market access provisions that were negotiated for U.S. beef in the U.S.-Dominican Republic FTA.  The addition of the Dominican Republic to CAFTA increases export opportunities for U.S. beef producers. One of the strongest aspects of the CAFTA agreement is the recognition of the fact that the vast majority of our exports are a premium grain-fed product that will not compete price-wise with Central American grass fed beef. The CAFTA agreement’s immediate duty-free access for U.S. prime and choice beef (defined as "high quality") into Central American hotels and restaurants is significant for cattle producers. 

Morocco: The House and U.S. Senate passed the U.S. – Morocco Free Trade Agreement (FTA) late last week.  The House bill (H.R. 4842) passed by a vote of 323-99; The Senate version (S 2677) vote was 85-13.  NCBA would like to applaud members nationwide for their work in getting these votes. This is a good agreement for the cattle industry as we gain access to a new market we’ve never had before, and this agreement sets a precedent for future agreements that maybe be beneficial for U.S. producers.  The bill will now move to the President’s desk for signature.  No word yet on when that might be.

Conservation Issues:  NCBA participated in a panel this week to discuss the needs of animal agriculture with regard to the Environmental Quality Incentives Program (EQIP). Arranged by the Natural Resources Conservation Service (NRCS) and chaired by NRCS Chief Bruce Knight, state conservationists gathered in St. Paul, Minnesota this week to discuss: barriers to participation in EQIP, what should NRCS do differently to make EQIP work better for cattle producers, Comprehensive Nutrient Management Plan (CNMP) issues, and other environmental issues.  Our Director of Environmental Issues, Tamara McCann Thies, represented NCBA on the panel.

Listening Sessions on Animal Identification:  The next USDA listening session on Animal ID will be held in Greeley, Colo. on August 10.  The USDA continues to host public forums to discuss the development, structure and implementation of a national animal ID program. Future sessions scheduled include:  Greeley, Colo. - Aug. 10; Billings, Mont. - Aug. 13; Kissimmee, Fla. - Aug. 16; Columbus, Ohio - Aug. 18; Ames, Iowa - Aug. 26; Joplin, Mo. - Aug. 27; Appleton, Wis. - Aug. 30; St. Cloud, Minn. - Aug. 31.  Producers are encouraged to attend.  Details about each session, including the site and time of meeting, will be posted at http://www.aphis.usda.gov/lpa/issues/nais/nais_listeningsessions.html.

USDA Surveillance for BSE: USDA continues its BSE surveillance program which began on June 1. APHIS posts the test results on their website at: http://www.aphis.usda.gov.  To date, 23,686 tests have been conducted with no positives reported. 

Congressional Schedule/Democratic Convention:  Congress is out for August recess.  Many Washington insiders are attending the Democratic National Convention in Boston this week (July 26-29).  The Republican National Convention will take place in New York City August 30-September 2. Congress is expected to reconvene September 7. 

Media Contact:

Tanya Augustson or Karen Batra at 202-347-0228; taugustson@beef.org or kbatra@beef.org

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