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Canada's Position on Live Cattle

The Big Picture: The continued closure of the US border for live cattle and certain beef products from Canada is having a corrosive effect on Canada-US relations. The closure has seriously disrupted the highly integrated and efficient North American beef industry and is causing tremendous harm to Canadian beef producers. Many in Canada believe that the science is taking a back seat to politically active protectionist groups who would benefit from the continued closure of the border. Canada is seeking the immediate opening of the US border to Canadian cattle and beef products.

What is happening: The United States Department of Agriculture (USDA) is engaged in a rule-making process to provide the necessary authority to re-open the border for certain classes of live ruminants and a broad range of ruminant products from Canada; and the Rule is currently with the Office of Management and Budget for review. The US border was closed to these products in May 2003 after a case of bovine spongiform encephalopathy was reported in a cow in Canada. A case of BSE found in Washington state has resulted in the loss of many global markets to US beef as well.

The Canadian cattle the Canadian industry has had to begin to take steps to protect what remains of its cattle industry. In the US, job losses have begun from slaughterhouse and other meat processing facilities that depend on the supply of Canadian beef.

Major US interests: The majority of the US beef sector supports the immediate re-opening of the border to Canadian cattle. The American Meat Institute, the National Cattlemen's Beef Association, the National Meat Association and the National Food Processors Association advocate for the re-opening of the border as soon as possible.

Key points:

1. Prior to the closure of the border, the integration of the North American beef market permitted producers at all levels of the value-added chain to organize themselves to improve efficiency and competitiveness to meet the demand of the US and overseas markets;
2. The border closure has resulted in significant economic hardship to US beef and related industries; cutbacks in employment and production, wage freezes and closure of a least one US beef slaughter facility;
3. Continued border closure is undermining the efficiency and global competitiveness of the North American beef industry;
4. Alaska's dairy industry is experiencing great difficulty as it is impossible to replace dairy cattle from the lower 48 states or Canada as a result of the ban;
5. Canada's industry has begun expanding slaughter capacity, which could have long-term impacts on facilities and employment in the US; and
6. Continued border closure undermines the position in countries where the US seeking to reopen beef access that US meat is safe.

More Information: More details are available at can-am/washington/trade_and_investment/agriculture or by contacting Fred Gorrell at 202-682-7629.

February 2005