NCBA ACTS TO SUPPORT COUNTERVAILING CASE AGAINST CANADA, OPPOSE ANTI-DUMPING CASE AGAINST MEXICO

PHOENIX (November 3, 1998) - The National Cattlemen's Beef Association (NCBA) Executive Committee today voted to support standing for a countervailing duty case against Canada, to oppose an anti-dumping case against Mexico and to remain neutral on an anti-dumping case against Canada.

NCBA's position on the Canadian countervailing case is the result of a re-evaluation of the three cases filed. The cases have been filed with the U.S. government by the Ranchers-Cattlemen Action Legal Foundation (R-CALF). The U.S. Department of Commerce and International Trade Commission are evaluating these petitions now.

"The face-to-face discussion at NCBA's quarterly Executive Committee meeting gave us an atmosphere where we could take a more in-depth look at this issue," said NCBA President Clark Willingham of Dallas.

"NCBA has long had concerns about government intervention in Canadian agriculture, particularly from their Wheat Board. There are potential subsidies that can make grain cheaper for cattle producers in Canada, and we need to take a hard look at that," Willingham added.

Canadian farmers only can sell grain for export to the Canadian Wheat Board, which keeps the Canadian feed supply artificially high by spreading out payments at a flat price and deducting transportation costs. Many local farmers sell to local feedlots at market value, which at times gives Canadian feedlot operators a competitive advantage in feed costs.

"NCBA appreciates the actions that have been taken by R-CALF to make fair trade for cattle producers a priority for the U.S. government," Willingham said. "However, the NCBA Executive Committee feels that the antidumping cases currently are not the approaches that will be most viable to solve these trade issues. U.S. cattlemen have developed a strong and vital two-way trading relationship with Mexican cattlemen and it is especially critical that this trade be continued while U.S. cattlemen face poor market conditions."

NCBA will continue to push forward with efforts already underway to work with Canadian cattle producers through bilateral negotiations, following up on the trade summit held in October.

Willingham said NCBA will continue to work on NCBA international trade priorities, including:

• Work with USDA and Congress to determine possible options on rescinding U.S. quality grades on Canadian imports and implementing country-of-origin meat labeling on imports.
• Work to assure that Mexican feeder cattle meet U.S. animal health standards.
• Expand the movement of more cattle north to Canada.
• Continue to work with the Mexican beef industry to increase understanding of U.S. feedlots, packing plants and border inspection processes.
• Expedite rulemaking that will allow Canada to recognize Disease Free Regions in the U.S. that can ship cattle to Canada.
• Ensure harmonization on animal drug issues.

Initiated in 1898, NCBA is the marketing organization and trade association for America’s one million cattle farmers and ranchers. With offices in Denver, Chicago and Washington D.C., NCBA is a consumer-focused, producer-directed organization representing the largest segment of the nation’s food and fiber industry.