Cattlemen Worry About S.A. Competition

August 23, 2001

The National Cattlemen's Beef Association, concerned about South America's competition for beef markets in Asia and Europe, wants an expanded Free Trade of the Americas Agreement (FTAA) to parallel multi-lateral World Trade Organization. That would keep South American beef producing countries aligned with US efforts to increase access in Asia and Europe, NCBA says.

In a letter to the U.S. Trade Representative Robert Zoellick NCBA president and Glasgow, MT, rancher Lynn Cornwell said, "We have felt all along that problems with the North American Free Trade Agreement (NAFTA) should be resolved and markets should be allowed to come into equilibrium before additional countries were added to the mix."

NCBA trade policy supports addressing trade issues in the context of comprehensive multi-lateral trade negotiations, not only as a part of a regional FTAA agreement. "The US beef industry has worked hard to promote beef exports, which now account for more than 12% of the value of wholesale beef sales," said Cornwell, "On a tonnage basis, we export nearly 10% of what we produce."

The market for exports of beef and beef variety meats has expanded, from approximately $500 million dollars 20 years ago to $3.6 billion today – more than a seven-fold increase. "Many FTAA countries are major beef exporters while many major beef importers are in Asia and Europe," said Cornwell, "The United States is currently the least restricted and largest beef import market in the world. We will not unilaterally increase access to the U.S. beef market without comparable increases in other markets for U.S. beef. Comprehensive multi-lateral WTO negotiations are the most effective vehicle for achieving this balance.