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R-CALF UNITED STOCKGROWERS OF AMERICA
NEGOTIATING OBJECTIVES

for the

FREE TRADE AREA OF THE AMERICAS AGREEMENT

Presented at the
Business Forum of the Free Trade Area of the Americas

Quito, Ecuador
October 29-31, 2002

R-CALF United Stockgrowers of America (R-CALF USA)
P.O. Box 30715
Billings, MT  59107
Phone:  406-252-2516
Fax:  406-252-3176
r-calfusa@r-calfusa.com

R-CALF United Stockgrowers of America is a national, non-profit cattle association representing over 6700 independent cow/calf producers, stockers, and feeders in 42 states, along with 32 state and local United States cattle and farm association affiliates.

1.  Given that cattle and beef are import sensitive, and given the tremendous losses that have occurred in the U.S. live cattle industry in recent years (See Current State of the United States Live Cattle Industry, R-CALF USA, Octover 29-31, 2002), cattle and beef should be excluded from the FTAA negotiations as premitted under Article XXIV of the GATT 1994.

2.  Failing this objective, the U.S. should insist on extended phase-outs of tariffs on beef and on the beef tariff rate quota (TRQ) for a period of not less than 15 years.  Tariff parity on cattle should be sought at U.S. levels (zero for zero reductions).  The U.S. should not agree on any expansion of the beef TRQ during the phase-out period.  If expansion of the beef TRQ is imminent, in no case should the expansion exceed the historical growth rate of the total beef consumption in the United States.

3.  For purposes of import measurements and administration of trade remedy laws, a live cattle meat equivalent formula must be established and cattle and beef must be designated as like/kind products and considered import sensitive products, eligible for all safeguards and protections afforded to beef.  Therefore, cattle must be considered part of the same like product as beef for purposes of trade remedy proceedings.

4.  Establish special import relief mechanisms for perishable and cyclical products in the form of automatic “snap backs” of tariffs and TRQs to current levels when live cattle prices fall to a particular “trigger” level.  “Trigger” levels should be established for each category of cattle and associated meat equivalents (See item 3 above), e.g., fed cattle, canners and cutters, feeder cattle. The “trigger” level could be the average cost of production for each category of cattle as calculated by USDA, the average price during a specified period, or an appropriate index reflecting the profitability of the U.S. live cattle industry.

5.  Establish rules of origin that prevent the transshipment of both beef and cattle from non-participating FTAA countries by providing that beef be derived from cattle born, raised, and slaughtered within FTAA countries and that cattle be born, raised, and slaughtered within FTAA countries.  Further require that all beef be labeled with its country of origin.

6.  Establish stringent health and safety rules that protect both our U.S. cattle herd and U.S. consumers from infectious disease, pests, contaminants, and substandard production practices.

7.  Establish rules that prohibit export subsidies by our trading partners; prohibit non-tariff barriers in FTAA markets; address the lack of harmonized regulation of animal agriculture, pharmaceuticals, chemicals, producer liability, worker safety protections; and all enforcement applicable thereto.

8.  Strengthen U.S. trade remedy laws, i.e., antidumping, countervailing duty, and safeguard laws, and preserve the ability of the United States to rigorously enforce these laws and improve the trade remedy process to make it more accessible to producers.

9.  Recognizing the need for special rules for live cattle and beef as perishable and cyclical agriculture products, and in accordance with Trade Promotion Authority, special rules should be developed to establish meaningful disciplines for market distortions caused by anticompetitive practices of participants within the food production and distribution chain.

10.  Recognizing the need for special rules for live cattle and beef as perishable and cyclical agriculture products, and in accordance with Trade Promotion Authority, special rules should be developed to require mandatory price reporting in all FTAA markets and require USDA to include in its statistical reporting all FTAA related price, supply, and demand data along with an analysis of this data as is presently collected in the United States market.

11.  Establish rules pertaining to currency valuation changes that confer artificial advantages to foreign cattle producers as compared to U.S. producers.

12.  Urge the United States work in negotiations with regard to agricultural products to extend the coverage of the Capper-Volstead Act to include international cooperatives composed of cattle and beef producers as well as marketing orders that cover FTAA cattle and beef producers. 

 

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