Contact:    Joe Schuele    202-347-0228    jschuele@beef.org

NCBA Praises U.S.-Russia Trade Agreement

Washington, D.C. (June 15, 2005) - The National Cattlemen's Beef Association (NCBA) is pleased with the new agreement between the United States and Russia establishing specific terms of access for U.S. beef, poultry and pork in the Russian market. U.S. Trade Representative Rob Portman announced the signing of the agreement today, formalizing terms originally reached in principle in September 2003.

Russia remains closed to U.S. beef following confirmation of a single case of bovine spongiform encephalopathy (BSE) in December 2003. However, the new agreement clarifies the economic terms that will define re-entry of U.S. beef into the Russian market once concerns about BSE have been addressed.

"Unfortunately, with the Russian market closed to U.S. beef, the impact of this new agreement will not be immediate," says Jim McAdams, NCBA president and an Adkins, Texas, cattleman. "But it is important for cattlemen to realize that a lot of work still must be done to ensure a favorable economic climate for U.S. beef once this market re-opens. NCBA is very supportive of the effort invested by USTR to finalize this agreement."

The agreement defines the playing field and enhances the business climate for exporters of U.S. products, according to Chief Agricultural Negotiator Allen F. Johnson. 

“With the signing of this agreement, U.S. exporters of poultry, beef and pork will have a more predictable market in Russia,” Johnson said.

The agreement confirms a special mechanism by which the United States may export a specific quantity of each of these products at a mutually agreed tariff level.  Quantities above these special measures would be subject to a higher tariff, operating in a manner similar to tariff-rate quotas. 

"Russia was the seventh largest export market for U.S. beef, prior to the imposition of BSE restrictions," McAdams said. "This is yet another critical market that we need to re-open, and we have to be proactive if we are to going to reclaim our market share. I'm glad to know that USTR is making progress with Russia on behalf of U.S. cattlemen."  

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The National Cattlemen’s Beef Association (NCBA) is the largest organization representing America’s cattle industry. Initiated in 1898, NCBA is the industry leader in education, influencing public policy to improve producer profitability and in preserving the industry’s heritage and future. Efforts are made possible through membership contributions. To join, contact NCBA at 1-866-BEEF-USA or membership@beef.org.