INTERNATIONAL TRADE:  LIVE CATTLE TO MEXICO

NCBA Staff Contact: 

Gregg Doud, Chief Economist
202-347-0228

gdoud@beef.org

Summary:
After years of negotiations, Mexico has reportedly offered a new trade protocol to the U.S. Department of Agriculture concerning the import of U.S. cattle.  This action by Mexico comes on the heels of the Texas Agriculture Commissioner banning certain Canadian cattle from passing through Texas’s export facilities into Mexico.

Background:

Mexico has denied access to U.S. breeding stock and older cattle since December 23, 2003, when the United States announced its first-ever case of BSE.  Currently, Mexico will only allow the importation of U.S. dairy heifers under the age of 24 months, despite in-depth international negotiations to broaden this to include breeding stock.

When the United States implemented the second Minimal Risk Regions Rule on November 19, 2007, it was widely believed that Mexico would lift the restriction on breeding stock, but the situation between the United States and Mexico remains unresolved.  Meanwhile, Mexico has agreed to take older cattle and breeding stock from Canada while denying the same arrangement with the United States, a move inconsistent with international standards.

Texas Agriculture Commissioner Todd Staples announced March 4th an order to stop specific Canadian cattle from passing through the state’s export facilities into Mexico.

Texas cattlemen support the move. In a joint statement issued today by the Texas and Southwestern Cattle Raisers Association, Texas Cattle Feeders Association, and the Texas Farm Bureau, the groups say, “It is imperative that Mexico accept all U.S. breeding cattle consistent with OIE standards, including cattle older than 30 months, so that U.S. beef producers continue to have an equal and open market with Mexico.  If Mexico can accept breeding cattle from Canada, they should accept them from the United States.”

It is likely that Mexico was being pressured by third party markets to reject older cattle and breeding stock from the United States.  “If these countries are pressuring Mexico to go against international guidelines, we believe that is outrageous and completely unacceptable behavior,” said NCBA Chief Economist Gregg Doud. 

USDA officials have reportedly expressed disappointment with their counterparts in Canada for yielding on confirmed science to political maneuvering.

Traditionally, the United States shipped approximately $125 million annually in live cattle breeding stock to Mexico.

Key Points:

·         Traditionally, the United States shipped approximately $125 million annually in live cattle breeding stock to Mexico.

·         Since December 23, 2003, when the United States announced its first-ever case of BSE, Mexico has only agreed to import U.S. dairy heifers under the age of 24 months, despite in-depth international negotiations to broaden this to include breeding stock.

·         Meanwhile, Mexico has agreed to take older cattle and breeding stock from Canada while denying the same arrangement with the United States, a move inconsistent with international standards.

·         Texas Agriculture Commissioner Todd Staples announced March 4, 2008, an order to stop specific Canadian cattle from passing through the state’s export facilities into Mexico. The move was supported by Texas cattlemen.

·         Mexico now has reportedly (as of March 5, 2008) offered a new trade protocol to the U.S. Department of Agriculture concerning the import of U.S. cattle. 

·         NCBA believes Mexico must abide by trade standards established by the World Organization for Animal Health (OIE) and accept imports of U.S. live cattle of all ages, including breeding stock, immediately.