Download - Regulatory | education | partnership Overcoming North American Trade Hurdles Barry Carpenter
regulatory | education | partnership
Overcoming North American Trade Hurdles
Barry Carpenter
2014 Global Meat Trade Exports in Million Tons
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
30
25
20
15
10
5
0
Poultry
Pork
Beef
USDA-FAS: 2014 Livestock and Poultry: World Markets and Trade
Beef Statistics
USDA-FAS: November 2013 Livestock and Poultry: World Markets and Trade
Livestock Marketing Information Center, Data Source: USDA-FAS
Source: USDA-FAS, CattleFax
Source: USDA-FAS, CattleFax
Pork Statistics
Globally, pork is expected to reach near record highs
USDA-FAS: November 2013 Livestock and Poultry: World Markets and Trade
Livestock Marketing Information Center, Data Source: USDA-FAS
Lamb Statistics Globally
Main world exporters are New Zealand and Australia, by a large margin
United States Minimal Exports are down 6% Most exports go to Mexico and Canada
Canada Minimal Top 3 export markets are Thailand, France and US
Mexico Net importer Export mainly to US and Russia
Data Source: USDA-FAS
Broiler Statistics
USDA-FAS: November 2013 Livestock and Poultry: World Markets and Trade
Livestock Marketing Information Center, Data Source: USDA-FAS
Trade Agreements and Groups NAFTA
Canada, US and Mexico Started January 1, 1994 Worlds largest free trade area
450 Million people 17 Trillion in goods and services
Trade Agreements and Groups US-Canada Regulatory Cooperation Council
(RCC) Created February 4, 2011 Working on reducing trade
hurdles between US and Canada Joint Action Plan released December 7, 2011
North American Trade History
Hurdles and Challenges Overall major hurdles and challenges in all
areas Streaming trade processes Eliminating re-inspection at borders Country of Origin Labeling (COOL)
Hurdles and Challenges: Policy and Government
Certification and border inspection needs to be streamlined
Common meat nomenclature
Hurdles and Challenges: Policy and Government – COOL Timeline
2002 – Made mandatory in Farm Bill
2008 – Amendments to address key problems
2009 – Final rule takes effect
2009 – Mexico and Canada file official complaint with WTO
2011 – Panel finds in favor of Mexico and Canada
2012 – WTO finds US out of compliance
2012 – May 23, 2012 compliance date set
2013 – USDA proposes and finalizes rule with no significant changes
Hurdles and Challenges: Policy and Government – COOL
Hurdles and Challenges: Policy and Government – COOL
Hurdles and Challenges: Policy and Government – COOL
Hurdles and Challenges: Policy and Government – COOL
regulatory | education | partnership
Hurdles and Challenges: Policy and Government – COOL
Beef Increased Processing Costs in the US Establishments running
imported cattle Increase $45.50 - $59.00 a
head Establishments running only
US beef Increase only $1.50 a head
Pork Increased Processing Costs in the US
Establishments running mixed origin hogs Increase $6.90 – $8.50 a head
Establishments running only US hogs Increase only $0.25 a head
Hurdles and Challenges: Policy and Government – COOL
If US does not comply, September – December 2014 WTO retaliation proceedings continue
and retaliation against US is authorized
Hurdles and Challenges: Policy and Government – COOL
Possible WTO punishments: US Taxpayer compensation to
Mexico and Canada The authorizations of trade
sanctions against the US Mexico and Canada have voiced support in favor of this punishment
Hurdles and Challenges: Animal Health A common protocol for disease outbreaks
needs to be developed Recognized zones for disease control Mutual veterinary services Method to ensure both countries are protected from disease
Still allow bilateral trade in disease free zones
Hurdles and Challenges: Animal Health A common protocol for
veterinary drug plans needs to be developed Align Maximum Residue
Limits and tolerances Develop method to
inform each other about newly introduced drugs
While maintaining each countries ability to make decisions on new products
Hurdles and Challenges: Meat and Food Safety
Have equivalent meat product inspection system Common approach to food
safety Align food safety systems
while protecting human health
Open sharing of information Government oversight
HACCP Data
Microbiological Chemical residue
Hurdles and Challenges: Meat and Food Safety
Testing practices and procedures Same food safety laboratory accreditation criteria Same of acceptable testing regulations Reliable evidence of test results
Canada lags the US in terms of rapid pathogen testing methods
Hurdles and Challenges: Meat and Food Safety
Mexico is behind US and Canada in food safety and system sophistication January 2014, Mexican
government announced that they will provide $50 million to abattoirs and processers
Hurdles and Challenges: Cultural
Hurdles and Challenges: Cultural
Conclusion: Big Picture Major hurdles facing North American
trade: Country of Origin Labeling
Hurting trade in Mexico, Canada and US Against WTO regulations Unnecessary as it is not improving food safety of
meat products
Conclusion: Big Picture Streamlining all processes and
regulations Multiple regulations from each
country is confusing and difficult to follow
In some cases, the same test is conducted multiple times by each country, which is unnecessary
Eliminating re-inspection Waste of money by both
countries conducting the same inspection
Unnecessary
Conclusion
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Thank you!
Questions?