US-Japan pact means no more beef trade bans: USDA

By Christopher Doering

WASHINGTON (Reuters) – As part of a U.S.-Japan agreement to
restore beef trade, Tokyo could reject individual shipments,
rather than cutting off trade altogether, as a safeguard
against mad cow disease, U.S. Agriculture Secretary Mike
Johanns said on Wednesday.

Japan’s January 20 suspension of U.S. beef imports came
after it discovered banned spinal material in a shipment of
veal from New York. U.S. farm groups have since complained
Tokyo’s response was overblown.

After two video-conference sessions, U.S. and Japanese
officials have agreed to re-start trade after Japan inspects
three dozen U.S. beef export plants to assure they followed
beef safety rules.

Johanns said in a statement that when trade resumes, “my
expectation is that minor noncompliance issues will not disrupt
our entire trading relationship.”

“Instead, Japan has agreed to notify us of such issues and
discuss the appropriate course, such as the rejection of
individual shipments, if appropriate,” Johanns said.

A spokesman for the largest U.S. ranch group, the National
Cattlemen’s Beef Association, said the language was not
ironclad, so another cut-off was possible. Japan has banned
U.S. beef for 28 of the past 29 months.

The association official said delays were possible as well
in the review and approval of U.S. plants, which could prolong
the shut-out.

Half a dozen senators from farm and ranch states unveiled
legislation for potentially billions of dollars in sanctions
against Japan unless sales resume by fall.

“Our goal is resumption of trade — not promises that trade
may resume,” said Sen. Kent Conrad, a North Dakota Democrat.
“We will proceed with our sanctions bill until Japan opens its
beef market to fair trade. We’ve had promises before that have
turned up empty.”

Japanese inspectors will begin their tours of U.S. beef
processing plants this weekend, Johanns said, with audits to be
completed by July 21.

“Upon completion of the audits, Japan has agreed to
expeditiously resume beef trade,” Johanns said.

“Although this agreement is another step toward the
resumption of beef trade with Japan, I will not be satisfied
until U.S. beef is once again accepted into the Japanese
market.”

Japan, once the largest importer of U.S. beef, lifted a
two-year ban on U.S. beef imports last December only to shut
down its markets again a month later after its inspectors
discovered banned spinal column cattle parts in a veal shipment
from New York. In 2003, Japan imported an estimated $1.4
billion of U.S. beef.

A summary of the U.S.-Japan agreement released in Tokyo
said that, if Japan finds beef that violates the export rules,
it will take “appropriate action commensurate with the nature
of the violation.”

A spokesman for the U.S. Agriculture Department said he was
aware of the three-page summary but cautioned, “Clearly, it is
not a joint statement” by both nations.

The United States has struggled to restore beef exports to
overseas markets, including South Korea and Japan, which
totaled $3.8 billion annually before mad cow was first
discovered in Washington state in December 2003.

(Additional reporting by Charles Abbott)