R-CALF Ranchers-Cattlemen Action Legal Fund / For Immediate Release May 23, 2000 / Contact: John Lockie 406-252-2516
(Billings, MT) In a move that would increase the exposure of U.S. cattle producers to huge foreign import supplies at artificially low prices, five national beef producer associations from Canada, Mexico, Australia, New Zealand and the United States met in Australia to address relaxing international market access. Also invited, as observers, were Argentina and Uruguay. Of the five, with the exception of the U.S., all are export dependent and represent the four largest cattle and beef importing countries into the U.S. The group is seeking the reduction of tariffs, the phase out of all TRQs (Tariff Rate Quota's), and weakening of anti-dumping laws.
R-CALF, in representing U.S. cattle producers, strongly disagrees with the proposal. "U.S. cattle producers already face a highly un-level trading field that favors foreign countries and U.S. beef industries who have benefited greatly from increased import supplies that have suppressed domestic cattle prices," says Dennis McDonald, chairman of R-CALF's International Trade Committee. "These kind of destructive agendas only compound what many producers feel is already a questionable trade agenda."
The five-country pact seeks redefining international and U.S. trade laws so that during period of low cattle prices dumping would require evidence of predatory intent. "Dumping laws are designed to protect U.S. producers from artificially low priced imports. This would increase the cost of pursuing a trade case enormously and would make it very difficult to enforce. Why should U.S. cattle producers be discriminated against in seeking damaging trade relief under U.S. trade laws, whether it's predatory or not 'dumping' as presently defined is injurious to a domestic industry? I think you have to ask yourself who benefits if this group is successful. Certainly not the U.S. cattle producers," said McDonald.
The U.S. already has the most open market in the world, with U.S. tariffs being 1/5th of the average of all other countries. "A more responsible agenda would be to seek tariff parity to put everyone on equal footing. TRQs are not designed to punish foreign producers; they are designed to protect domestic industries and economies. Eliminating tariffs and TRQs puts all the market power in the hands of a few -- the beef industry, and exposes U.S. cattle producers to foreign over production and economic problems," said Kathleen Kelley Vicechair of R-CALF. "Free trade, like free markets in the U.S., should not mean that you're free to do whatever you want to whomever you want. These types of actions are an arrogant disregard for U.S. producers and undermine the fundamentals and principles of fairness in this country," said Kelley.
R-CALF will be working closely with U.S. trade officials, U.S. Senators and Representatives, and other cattle industry groups to insure trade laws and safeguards are not compromised. "U.S. cattle producers have been under an onslaught of attacks in recent years from land and water use, to private property rights, to beef industry concentration pressures. It's time we said enough is enough and start working together," said Wendy Schalek, R-CALF Director from Minnesota.:
