Trade Initiatives Should Reduce Barriers to Access for U.S. Beef

photo #1- Wythe Wiley testifies before USTR Panel
photo #2- USTR Listens to Wythe Wiley testimony

Washington, D.C. (September 10, 2002) – Iowa Cattleman and National Cattlemen’s Beef Association (NCBA) President Wythe Willey spoke out against trade policies which restrict access to U.S. beef, and pledged NCBA’s support of the Administration’s pro-trade agenda.

Willey testified late Monday afternoon before an interagency panel of the Office of U.S. Trade Representatives seeking comments on trade negotiations and elimination of trade barriers in the Western Hemisphere.

“NCBA has worked tirelessly for Trade Promotion Authority and supports the Administration’s pro-trade agenda at the WTO,” said Willey. “We support this agenda because it is the right thing to do for the nation’s cattle producers, U.S. agriculture, and for the country.”

Willey cited tariff reduction as a major factor in negotiating trade policies, and called for retaining a system of tariffs and Tariff Rate Quotas (TRQs) to provide a “safety net” against surges in imports and predatory pricing.

“The U.S. is the world’s largest and best beef market -- due in part to the promotion efforts by cattlemen. We are also the second largest beef exporter. Due to the unique position of our industry as importer and exporter, we must consider balance, equity and fairness of proposed trade initiatives to assure that they provide as much or more access for U.S. beef as we give for imported beef,” Willey said. “We already have the most open, yet least restricted major beef market in the world.”

NCBA called for resolution of a number of issues in order to achieve a FTAA on a parallel track with the World Trade Organization (WTO) negotiations by 2005:

§ Science-Based Regulations: Policy must address potentially over-riding concerns about biosecurity. “We have witnessed the huge economic and social costs as FMD and BSE have devastated the European beef industry,” said Willey. “We are determined that the North American industry will not be exposed to the same fate.”

§ Export Subsidies: The U.S. beef industry does not use export subsidies, and NCBA supports the Administration’s proposal to phase out all export subsidies within five years.

§ Domestic Support: NCBA is willing to work closely with the Administration on strategies to reduce overall domestic support in the global beef industry, and will consider a zero for zero proposal or proposals for substantial reduction of domestic supports in the meat sector.

§ Access Issues: Beef markets in other developed countries remain virtually closed to U.S. beef or protected by relatively high tariffs. NCBA will support continued movement towards reduced tariffs and expanded TRQs, but only as part of a comprehensive package that addresses export subsidies, production subsidies and a continuing and growing list of Sanitary/Phytosanitary (SPS) and Technical Barriers to Trade issues.

”Since only 15 percent of the current U.S. beef TRQ is allocated to FTAA countries, we believe that any movement to expand existing U.S. tariff rate quotas should be with an objective of rebalancing access to the U.S. beef market in the favor of FTAA trading partners,” said Willey.

“We do not outright oppose an FTAA,” explained Willey. “However, political considerations dictate that we can only support this initiative if it is conducted on a parallel track with multilateral WTO negotiations that gain more access than we give.”

“NCBA appreciates the initiatives that have been undertaken to gain access to international markets, Willey concluded. “But we must resolve lingering issues that restrict the ability of the U.S. beef industry to offer its products to international consumers.”

NCBA... working to increase profit opportunities for cattle and beef producers by enhancing the business climate and building consumer demand.