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2014 Global Meat Trade Exports in Million Tons
20
15
30
25
Poultry
10
Pork
5
Beef
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
USDA-FAS: 2014 Livestock and Poultry: World Markets and Trade

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

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





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

USDA-FAS: November
2013 Livestock and
Poultry: World Markets and Trade

Livestock Marketing Information Center, Data Source: USDA-FAS

 NAFTA



Canada, US and Mexico
Started January 1, 1994
Worlds largest free trade area
 450 Million people
 17 Trillion in goods and services

 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

 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

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Hurdles and Challenges: Policy and
Government – COOL
Pork Increased Processing
Costs in the US
Beef Increased Processing Costs in the US


Establishments running mixed origin hogs
 Increase $6.90 – $8.50 a head
Establishments running only
US hogs


Establishments running imported cattle
 Increase $45.50 - $59.00 a head
Establishments running only
US beef
 Increase only $1.50 a head
 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

 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



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

Questions?
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