Meat + Poultry - April 2004 - 13

Canada increases access for feeder cattle
The Canadian Food Inspection Agency announced this past month
that it will introduce new rules to increase year-round access for
feeder cattle imported from the United States into Canadian feedlots.
The rules remove anaplasmosis and bluetongue testing and treatment requirements from all feeder cattle imported from the U.S., effective April 1, 2004.

that Canada can open its border to U.S. feeder cattle, providing certain risk mitigation measures are in place."
Bluetongue and anaplasmosis are livestock diseases found in the
U.S., but not in Canada. Feeder cattle from 39 states considered to
have a low incidence of bluetongue can be exported to Canada without testing. Feeder cattle from the balance of the states, with a high

"We have determined that Canada can open its border to U.S. feeder
cattle, providing certain risk mitigation measures are in place."
"We continuously strive to ensure that our import policies protect
food safety and animal health without being overly restrictive," said
Bob Speller, minister of agriculture and agri-food. "Based on emerging science and consultation with stakeholders, we have determined

incidence of bluetongue, are not required to be tested, if they are kept
at a feedlot for at least 60 days prior to export, in a low incidence state.
If tested, however, and the feeder cattle are free of bluetongue, the 60day period will be waived.

Dominican Republic enters into CAFTA
The United States and the Dominican Republic concluded a comprehensive free trade agreement this past month that opens markets,
phases out tariffs, strips away trade barriers and promotes economic
growth by integrating the Dominican Republic into the recently concluded Central American Free Trade Agreement.
"This is a proud day for the people of the Dominican Republic and the United States," said
Robert Zoellick, U.S. trade representative. "This
agreement will help both countries to grow stronger together."
U.S. two-way trade with the Dominican Republic totals about $9 billion annually. Total U.S. goods exports to
the Dominican Republic in 2003 were 73 percent higher than total
U.S. goods exports to Argentina.
More than half of current U.S. farm exports to the Dominican
Republic will become duty-free immediately under the agree-

ment, including corn, cotton, wheat, soybeans, many fruits and
vegetables, and processed food products. Tariffs on most U.S.
farm products will be phased out within 15 years, with all tariffs
eliminated by 20 years.
Duty-free access under tariff-rate quotas will
be established for U.S. beef, pork, poultry, rice
and dairy products. The U.S. and the Dominican
Republic will work to resolve sanitary and phytosanitary barriers to agricultural trade, in particular problems and delays in food inspection procedures for meat and poultry.
The Dominican Republic is the largest Caribbean economy, and
the second-largest Caribbean country in population and landmass.
In 2002, economic growth in the Dominican Republic reached 3.9
percent, and the country grew five times more than the average for
Latin America.

F.A.P.R.I. predicts continued export growth
A weak dollar, high prices and global economic growth bode well for
U.S. agricultural exports, according to the 10-year projections developed by the Food and Agricultural Policy Research Institute. A moderate depreciation of the dollar keeps U.S. products cheaper in export markets relative to those of industrialized competitors. This competitive edge and 3 percent growth in the global economy, especially
in Latin America, Asia, and transitional economies, are projected to
increase the value of agricultural exports by 27 percent by 2013.
Grain and feed exports account for 25 percent of this increase.
The value of animal and meat exports are expected to rise 42 percent over the 10-year period, provided that sanitary and phytosanitary problems are overcome.
According to the report, export prospects are even stronger for
Latin American competitors because of their successful control of
sanitary and phytosanitary concerns, low production costs and depreciation of their currencies against the U.S. dollar. Brazil and Argentina gain higher export market shares in grains and oilseed
APRIL 2004

products and an increased presence in meat markets. As a result,
the U.S. share of world crop exports will decrease through 2013.
The long-term outlook for U.S. corn and other feed grains, embodied in meat exports, is excellent following the resolution of sanitary
and phytosanitary issues. Oilseed prices are expected to decrease
significantly from their 2003 peaks but level off at around $250 per
metric tonne through 2013. The U.S. share of crop exports decreases
over the projection period.
The European Union will grow by 10 new members in 2004. Reforms of the Common Agricultural Policy in 2005, including decoupling of subsidy payments, decrease beef production in member
countries, resulting in more E.U. beef imports throughout the period.
Identification of bovine spongiform encephalopathy in Canada resulted in the closing of some of its export markets. B.S.E. problems
also compromised U.S. beef exports in 2003-2004, but F.A.P.R.I.'s estimates indicate U.S. beef exports will resume their long-term growth
by 2005/06.

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Meat + Poultry - April 2004

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