Canada-Mexico-United States Agree to A Unified

Bovine Spongiform Encephalopathy (BSE) Import Standard

Officials from Canada, Mexico and the United States met recently in Mexico City and agreed to a unified North American import standard for Bovine Spongiform Encephalopathy (BSE). The standard, based on scientific data, provides continued protection of human and animal health and food safety, while also establishing a framework for safe international trade opportunities for cattle and beef products from Canada, Mexico, and the United States.

Canada

Effective immediately, the Canadian Food Inspection Agency (CFIA) has expanded access under its import regulations to allow for the importation of a range of US commodities that have been previously prohibited. The new import regulations allow the importation, of feeder cattle less than 30 months of age and goats and sheep less than 12 months of age for feeding or immediate slaughter. Bulls destined for animal semen production centers and bone-in-sheep and goat meat from animals under 12 months of age.

With regard to fertilizers and animal feeds, the regulations have been slightly broadened to prohibit the importation of these products if they contain ingredients derived from any ruminant animals.

Interested parties may access these regulations at:

http://canadagazette.gc.ca/partII/2005/20050331-x2/pdf/g2-139x2.pdf

Mexico

Mexico has indicated that they will immediately begin the process to amend its import permits to allow for the importation of a broader range of commodities from Canada. Mexico expects to be in position to import this range of products within three to four months. The US has agreed to consider such action as consistent with its requirements for continued access by Mexico to its markets.

United States

These new regulations closely resemble published, but not yet implemented US requirements. The United States Department of Agriculture (USDA) Food Safety and Inspection Service has issued regulatory requirements that apply to the importation of Canadian cattle, sheep, and goats to become effective on March 7, 2005. However, the US District Court for the District of Montana has issued a temporary injunction to temporarily delay the implementation of USDA's minimal-risk rule, which would re-establish trade with Canada for live cattle under 30 months of age. A trial is to be scheduled on the final rule and the temporary injunction will remain in place while the judge considers the litigation. The USDA's next step in the Canadian live cattle case remains undecided.

Deringer's Consulting Group continues to monitor this issue and will provide more information as it becomes available. For further information, please contact the Deringer Logistics Consulting Group at 518-297-3511 or email us at consulting@anderinger.com.