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Sanitary Measures Impact on US-Canada Beef Trade
AGEC 630 – Agriculture, Food and Resource PolicyProf. John Henning
Fabrizio GalliMS-1F
Winter 2009
Outline
- Traceability systems in the US and Canada
- Sanitary measures in the context of the SPS/WTO Agreement
- Canadian beef sector exports to the US
- BSE case in 2003 US reaction under the international sanitary regulations’ perspective
US Traceability System
- 1940’s : APHIS Official enforcement X brucellosis
- Animal identification gains: producers, APHIS
- Paradox: disease eradication, participation
- Several identification systems- deficiency reasons- data incompatibility
- National Animal Identification System (NAIS)
repeated data entry
US Traceability System
National Animal Identification System (NAIS)
- US Animal Identification Plan (USAIP) – 2003
- BSE case in the same year ad hoc policy formulation?
- Trace an animal back to the herd or premises + potentially exposed animals
- Three main components
- No mandatory requirements 70% “critical mass” participation
premise registration
animal identification
animal tracing
- Canadian Food Inspection Agency (CFIA) 13 Acts
- Health of Animals Act (Health of Animals Regulation, Section 15)
- Canadian Cattle Identification Program (CCIP) – 2001
- Canadian Sheep Identification Program (CSIP) – 2004
- Main requirement: bar coded/RFID tag prior to leaving the farm
- Canadian Cattle Identification Agency (CCIA)
- Quebec Agri-Traçabilité, two eartags, date of birth inclusive
- Level of participation: Administrative Monetary Penalty System (AMPs)40% (soft enforcement) 97.5% (hard enforcement)
Traceability in Canada
M
unique identification number + distribution of eartags
Sanitary measures affecting international trade
- Non-tariff barriers in the GATT context: 1973-1979 Tokyo Multilateral Round
- Standards Code regulatory instrument X protection of human, animal and plant life and health
- Proliferation of technical measures affecting agriculture
- Punta Del Este Ministerial Agreement agenda for Uruguay Round (1986)
- 1994: WTO integrated system
- Technical Barriers to Trade (TBT) Agreement
- Agreement on the Application of Sanitary and Phytosanitary (SPS) Measures
Sanitary measures affecting international trade
- sovereign right of members to protect human, animal and plant life or health
- central debate: lack of legitimate health concern impediment to trade
- distinguish real SPS threats from disguised protectionism
- role of science in the determination of SPS measures
- International standards from the World Organization for Animal Health (OIE), Codex Alimentarius and International Plant Protection Convention (IPPC).
SPS/WTO Agreement
Sanitary measures affecting international trade
- OIE science oriented expertise on animal disease control
disease status of a country free areas with vaccination and no vaccination
- Codex Alimentarius: food standards to protect consumers- Article 2: despite encouragement to adopt OIE/Codex standards,
appropriate level of protection scientific justification- Article 3: Harmonization- Articles 5.1, 5.2 and 5.3 risk assessment analysis- Transparency of the agreement: notification of SPS measures
- justification of the measure
- identification of product subject to such measure
- enquiry points
- Article 6: Regionalization SPS Committee meetings
SPS/WTO Agreement
Canadian beef sector
- Significant share of total production: exports 37% (2008).
0%
10%
20%
30%
40%
50%
60%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Exp
ort
s as
a p
erce
nta
ge
of
pro
du
ctio
n
US beef imports
- Canada accounts for a large proportion of US beef market
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Car
cass
wei
gh
t, p
ou
nd
s
Australia Canada New Zealand Brazil
0
100
200
300
400
500
600
700
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
1,00
0 M
T C
WE
Canadian beef exports
Canadian live cattle exports
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
1,00
0 H
EA
D
- Canadian beef sector: economic losses from BSE case and US response.
- US imports of beef, bovine products and live cattle from Canada estimated in $ 1.2 billion (2002).
- Import permit system established by APHIS- boneless beef products from cattle less than 30 months of age
- Canadian animals ineligible to US market (120,000/month)
- Increase in cattle inventories X slaughter capacity limited
- US beef importers: possible restrictions on US beef
- Final argument: conformity of trade measures with international sanitary regulations + cost benefit analysis.
SPS measures resulting from BSE outbreak
References:
1- Analysis on US beef trade with other countries
2- Beef prices on US domestic market
3- Government reaction to possible lobby pressure from interest groups within the US beef sector
Suggestions for further analysis
- Canadian Food Inspection Agency – www.inspection.gc.ca, accessed in April 2009.- Codex Alimentarius – www.codexalimentarius.net, accessed in April 2009.
- Lima, R. C. A.; Barral, W. Barreiras Não-tarifárias ao Comércio: O Papel Regulatório da OMC, Controvérsias e Novas Restrições. Icone. Brazil, 2008.
- Prévost, D. The Japan-Apples Dispute: Implications for African Agricultural Trade. Tralac Trade Brief Agri Conference. South Africa, 2004.
- Roberts, D. Preliminary Assessment of the Effect of the WTO Agreement on Sanitary and Phytosanitary Tarde Regulations. Journal of International Economic Law (1998) 377-405.
- World Trade ORganization – www.wto.org, accessed in April 2009.
-World Organization for Animal Health – www.oie.org, accessed in April 2009.
- US Department of Agriculture (USDA) – www.usda.gov, accesse in April 2009.