U.S. Cattlemen's Association Testifies
Before International Trade Commission

Zalesky provided an overview of the U.S. cattle industry to the ITC as well as the obstacles U.S. cattle producers face with regard to trade policy. Zalesky's testimony included the following comments.

"A brief review of global and U.S. statistics tell a grim story. Today, as global production and consumption rise, U.S. exports of both beef and cattle are barely more than half of 2002 levels. In contrast, U.S. imports of beef already exceed 2002 levels and are still rising. Meanwhile, though total cattle imports are lower than in 2002, imports from Canada - the source of bovine spongiform encephalopathy (BSE) in North America - are rising and rapidly regaining 2002 levels. Behind these aggregate numbers, the economic effect of BSE can be more clearly seen. Although global markets have shown signs of warming up to renewed U.S. exports, the effects of BSE-related barriers continue to stifle U.S. export prospects. Japan and Korea, the historically the two largest U.S. export markets by value, remain largely closed to U.S. beef."

"Unfortunately, BSE-related barriers are not the only regulatory barriers affecting U.S. exports of beef. The European Union (EU) has long banned U.S. exports of hormone-fed beef, despite a decision by the World Trade Organization (WTO) Appellate Body that the ban violates EU obligations under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures. The EU has remained defiantly out of compliance on this since 1999.

"High tariffs and agriculture subsidies in other parts of the world also play a role in the global market. The U.S. maintains an open import market, through the use of a generous tariff rate quota for beef, in which over-quota shipments face a 26.4% tariff. By comparison, tariffs elsewhere in the world average approximately 85%.

"Subsidies, too, are a major part of the problem. Several of the largest producing nations, including Brazil, Australia, Canada and the EU, directly subsidize cattle and beef production.

"Australia and Canada also operate state trade enterprises (STE) that enjoy monopoly control over grain production. Through these STEs, cattle producers in both countries enjoy access to cheap feed grains that artificially lower the costs of production.

"Finally, dozens of bilateral free trade agreements, particularly between the EU and other nations, fail to include agricultural tariffs. This failure exacerbates the closed nature of the global marketplace and further channel global exports to the open U.S. market that would otherwise be destined to third-country markets."

Zalesky noted that these problems could be solved by harmonizing BSE standards and allowing voluntary BSE testing of animals to strengthen consumer confidence and establish beyond reproach a U.S. commitment to transparency. "Furthermore, the U.S. should implement mandatory country of origin labeling for beef," he continued. "Labeling will provide transparency for consumers, enabling them to make informed choices."

Zalesky, a veteran advocate of trade policy for the cattle industry, also had meetings on Capitol Hill where he informed congressional staffers about USCA's international trade policy, including USCA's opposition to regionalization of beef trade with Argentina related to animal health disease issues.

"USCA strongly opposes any attempt to weaken oversight or regulation of trade with Argentina because doing so could expose the American herd to foot and mouth disease, a highly contagious infection," said Zalesky. "We believe that proper enforcement of regionalized trade would be impossible, opening the door for these regions to become gateways for beef from non-approved areas of Argentina and Brazil, another country with serious foot and mouth disease issues. Time and time again, Argentina has proven that it cannot be trusted to live up to its promises. Let's not forget that this is a nation that heavily subsidizes its agricultural industries and routinely defaults on international loans."

Zalesky holds a PhD in bovine reproductive physiology from Texas A & M University and a masters degree in animal science from the University of Nebraska-Lincoln.  Zalesky is the immediate past president of Colorado Independent CattleGrowers Association. 

Established in March 2007, USCA is committed to assembling a team to concentrate efforts in Washington, DC to enhance and expand the cattle industry's voice on Capitol Hill.  For more information visit www.uscattlemen.org

Good Neighbor Committee
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