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More on the mad mad cow mess - and Mexico
By Richard Hanson

TOKYO - Late last year, the United States, the world's largest beef consumer, abruptly joined the not so clubby gang of mad cow nations - subjected to the uncomfortable position of beef pariah among countries that have discovered even one case of mad cow disease. Most painful: Virtually every beef-eating country in the world has slapped bans on imports of American beef and beef products.

In the bovine spongiform encelphalopahy (BSE) world, getting back isn't easy, as officials from the US Department of Agriculture (USDA) have found. For now, the way back is barred in Japan, once America's largest, and by far most lucrative beef product market. Just as tightly closed to imports is Mexico, just south of the US border.

The USDA first took aim at restoring its place in the Japanese market, though with no luck. Japan refuses to import American beef unless the US government meets its very stringent - some say excessive - domestic beef consumption safety standards. Most onerous is that Japan itself conducts tests for BSE in all cattle that go to the slaughter house and on to the consumer. The US considers blanket testing unrealistic, unnecessary and too costly.

US-Japan talks were held in late January in an effort to figure out how to reopen trade, but no agreement was reached. The US said it would take proposals to the next meeting, which has yet to be scheduled, though informed speculation about early February failed to pan out.

In the meantime, the US is conducting intensive talks with Mexico to re-open that import market. The USDA sees some progress in those talks. Here's the rub:

Japan might reject Mexican beef exports
Asia Times Online has learned that any bilateral agreement reached by the US and Mexico over the importation of beef could trigger a protectionist reaction from Japan and other countries that maintain an import ban on beef from the US.

In the worst case, that could mean restrictions placed on Mexican exports to Japan and other countries, to protect against any leakage of US beef through Mexican export channels.

Welcome to the world of BSE the Superpower. Let's look at how the US, Japan and now Mexico are coping with the disease.

If you want know how to salvage the BSE-sunken US-Japan beef trade, it might be good to keep your eye on Mexico. And don't lose sight of Japan's latest mad cow.

Having run into a veritable block of chilled beef in trying to argue a weak scientific case for re-opening beef imports to Japan - America's biggest export beef market until December 23 last year - the USDA has concentrated its efforts on Mexico, which of course was America's second-largest beef market.

US farmers are looking for a breakthrough. USDA undersecretary J B Penn, who was in Tokyo at the end of January, said that the US now has answered all of Mexico's questions on BSE safety measures and a compilation of that data is being made. Therefore, he said, the US will have no further obstacles in convincing Mexico to lift its ban on American beef.

No direct link to Japan there, but the US is putting up its best arguments for Mexico to take US beef in the hope that Mexico could prompt re-entry into the Japanese market, even if indirectly.

US hopes Mexico could help open Japan's door
Officials from Japan and Mexico, later this week and again in early March, are planning to make concessions to each other over agricultural issues, including exports of Mexican juice, chicken, pork and beef to Japan. This is supposed to be the last leap in order to complete a long-pending accord to sign a Free Trade Agreement.

Some in the US beef industry see this as part of a plan to re-open the Mexican market to American beef, as a step to re-opening the Japanese market.

As such, a high-level Mexican delegation will be given a tour of three of America's most modern slaughterhouses - two in Texas and one in Colorado owned by Tyson, Cargill and Swift, the biggest US beef exporters to the world, and to Japan before the BSE outbreak. These companies want to convince Mexico they satisfy the highest safety standards.

Japan, however, might have a more difficult time convincing the world its beef is safe. During the weekend, Japanese health officials confirmed the nation's 10th case of mad cow disease.

Japan discovers its own mad cow
On Saturday, the Ministry of Health, Labor and Welfare took charge of the investigation as soon a nearly eight-year-old Holstein dairy cow was identified as a possible BSE victim in Hiratsuka, a bedroom community in the sprawling prefecture of Kanagawa west of Tokyo.

The signs were clear. The cow had trouble standing from a dislocated hip and a broken leg. The mandatory initial screening was done at the slaughterhouse. According to a report, the health ministry and prefectural officials didn't find some of the typical signs of the disease such as sensory problems.

But a preliminary test conducted at a prefectural institute found the cow positive for the disease. A sample was sent to the National Institute of Infectious Diseases, where more testing, including advanced western blotting, was done.

The tests concluded it was highly likely the animal was infected with the brain-wasting illness. BSE Case No 10 had a lot in common with six of the other nine cases identified since September 2001, including the cows' ages - they were all born around March 1996.

Kanagawa's first mad cow had been discovered in June 2003. Farm inspectors are checking the health of 63 other milk cows on the same farm.

What these six cows all had in common was pinpointed by an official government inquiry into the causes of BSE in Japan. They concluded that all of the spring 1996 birthday cows are suspected of having been fed meat and bone meal tainted with BSE.

This report by the BSE Epidemiological Investigation Team was published about one week before its finding was made redundant. In early October, BSE No 8 was found followed at the end of October by BSE No 9.

Japan still demands rigorous US testing
Lobbying Japan so far produced no meeting of minds. Japan refused to consider re-opening US imports unless the US tested its cattle for BSE in some way equivalent to the way Japan does. The American's arrived at a bad time.

A Japanese BSE fact-finding delegation had just returned from a lengthy (by quick-study standards) tour of the US, including Washington State (home of America's first BSE case) and Canada's Alberta province, where Canada's first mad cow was found and, as it turned out, the US mad cow was born.

When they returned, the fact-finders reported their opinion that the US was likely to find more BSE cases, which could also be said of Japan or any country that has already experienced the disease among its cattle. The meeting ended with the USDA officials saying that they would return. The impression was left that this might take place before the end of February.

That is no longer the game plan, for at least two reasons.

On the one hand, there has been a significant shift in thinking with the US beef industry itself, which has become much more amenable to compromise over the conditions that might enable Japan to accept a re-opening of imports of beef from the US - and other BSE-banned former suppliers of beef. These compromises involve all parties accepting new approaches to end the ban.

From the US beef industry, there has been some rather detailed thinking along the lines of exporting only low-risk beef - very young, 18-24 months old and free from specified risk materials such as spinal column material.

The other large issue is over the issue of testing cattle for BSE. There appears to be little room for compromise between the two governments. About the only possibly bright scenario would be for the US and Mexico to come up with a set of import standards that would look attractive to Japan.

"We are all trying to work toward opening the import market," said one Japanese observer "but we will take necessary measures to prevent American beef from finding its way into our market."

That is why Mexico looms large.

(Copyright 2004 Asia Times Online Co, Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)
 
Feb 25, 2004



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