U.S. government in Seattle court seeking to reopen border to Canadian cattle
at 14:12 on July 10, 2005, EST.
STEVE MERTL
VANCOUVER (CP) - The latest skirmish in the border war over mad cow disease is set for a Seattle courtroom on Wednesday as the U.S. government tries overturn an injunction barring imports of Canadian cattle.
But the Canadian beef industry, which estimates it has lost $7 billion since the border closed two years ago, is largely stuck on the sidelines while the U.S. Department of Agriculture fights a splinter group of American cattle producers.
In neat piece of legal judo, the Ranchers-Cattlemen Legal Action Fund, United Stockgrowers of America, succeeded last March in blocking the department's plan to reopen the border.
The group, known as R-CALF, persuaded a federal judge in its home base of Billings, Mont., to grant a temporary injunction against renewing imports of Canadian live cattle under 30 months of age.
R-CALF argued Agriculture had failed to show that Canadian cattle presented a minimal risk of spreading bovine spongiform encephalopathy (BSE) through American herds after three cases of BSE had been discovered in Canadian animals since May 2003.
Now the department is asking a three-judge panel of the U.S. Court of Appeals Ninth Circuit to overturn the temporary injunction issued by U.S. District Court Judge Richard Cebull.
That ruling triggered a wave of anger among Canadian producers and governments that R-CALF had managed to scuttle a carefully orchestrated reopening of the border to younger cattle, deemed by experts to be virtually no risk of transmitting the brain-wasting disease.
Officials on both sides of the border argued vehemently that Canada's BSE screening procedures met U.S. requirements.
"We are very reassured and pretty firm in our understanding of the science," Ed Lloyd, press secretary to U.S. Agriculture Secretary Mike Johanns, said from Washington, D.C.
"The rule that we've put forward is very measured and scientifically sound and we are going to proceed as best we can to see that that is in place."
U.S. Treasury Secretary John Snow, in Canada for financial trade talks, said Saturday in Calgary the government is confident it will overturn the temporary injunction and reopen the border.
But whatever the appeal court's decision, Cebull will is still scheduled to hear arguments on July 27 in Billings to make the injunction permanent.
"The case and the hearing on the merits of R-CALF's petition against the rule still have to be heard," Dennis Laycraft, executive director of the Canadian Cattlemen's Association, said from Calgary.
The association, along with the Alberta Beef Producers' Association, their U.S. ally the National Meat Association and the Canadian government, lost a bid for intervenor status at the hearings but they are appealing.
The cattle ban rivals softwood lumber tariffs as a major trade irritant between Canada and the United States. But it's different in that the U.S. government and much of the American beef industry has sided with the Canadians.
R-CALF, founded about a decade ago, has feuded with American meat-packing giants who back the integration of the Canadian and U.S. beef industries.
"It's a group that's appealed to a certain element down there that are highly protectionist," said Laycraft.
R-CALF sued U.S. packers to force up prices and fought unsuccessfully to impose anti-dumping and countervailing duties on Canadian beef.
"They've been promoting a whole range of policies to obstruct trade with Canada," said Laycraft.
The BSE-spurred ban on Canadian beef was a godsend to American producers, driving up domestic cattle prices as the free flow of Canadian animals to U.S. packing plants stopped.
The border has reopened to processed Canadian-packed products - know as boxed beef - but not to live animals.
No one from R-CALF was available to comment but the group contends in its legal submissions there's no evidence Canadian screening procedures and rules regarding contamination of cattle feed will eliminate the BSE risk.
It claims the number of Canadian cases found so far suggest there are still undiscovered BSE-infected animals in the Canadian herd. It has also proffered scientific experts who argue young cattle still present a risk.
R-CALF's argument may have been sideswiped by the recent discovery of BSE in an older Texas animal, says Darcy Davis, president of the Alberta beef producers.
"All R-CALF's arguments about different levels of risk all fall away with the finding of that cow," he says, noting Canada has not closed its border in reaction to the Texas case.
"The trade position of the U.S. government that they're provisionally free (of BSE), that falls away. Now we need to discuss how best to go back to trading all different kinds of cattle."
The impasse concerns the U.S. agriculture secretary, said spokesman Lloyd.
"It sends an inconsistent signal to our trading partners when we're asking Japan and other trading nations to open their markets to us, yet we're not opening our market to Canada for the same reason," he said.
Lloyd sees R-CALF's position as hypocritical and self-defeating.
"They're looking at perhaps there is a short-term economic gain by this," he said. "But you look at the industry and the restructuring, the continued capacity-building in Canada in slaughtering, once that restructuring occurs it's not going to be undone.
"I think somewhere between 10,000 and 15,000 U.S. jobs have been lost in the packing industry because of this."
Laycraft said Canadian processing capacity, much of it U.S.-owned, will rise by 50 per cent once all current expansions are finished.
"What we're seeing is we've moved a lot of the processing back to Canada and we have a larger herd," he said.
While producers have seen the equity value of their operations decline and debt levels increase, Laycraft said there's been no major shakeout.
"Most people have found ways to cope in one way or another with this," he said.
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