Mexico antidumping, delays, Japan BSE talks

Mexico                                                                                         

Mexican Government Ruling On Compliance With NAFTA Panel Ruling Will Benefit Only Carcass Exports But Will Eliminate 30-Day Rule

The Mexican government reportedly will publish this week a 95-page ruling on how it intends to comply with a report issued in March by a binational North American Free Trade Agreement (NAFTA) panel on Mexico’s antidumping case against U.S. beef.

As it stands, USMEF concludes, the ruling will have little tangible effect on U.S. beef exports to Mexico. Although details are unconfirmed, sources tell USMEF the ruling will:

• Eliminate duties on exports of U.S. beef carcasses (in 2003 the U.S. exported only 1,899 metric tons of beef carcasses to Mexico);
• Remove the requirement that U.S. beef can only be exported to Mexico within 30 days of slaughter;
• Allow U.S. beef companies to resume exporting ungraded beef to Mexico, although they will have to pay the duties previously assigned to them by the Mexican government;
• Recognize name changes of several U.S. companies, allowing them to export to Mexico under their new names and pay the duties previously assigned by the Mexican government instead of the $0.63 per kilogram assigned to all U.S. companies which didn’t receive specific duty rates; and
• Confirm the imposition of antidumping duties on both bone-in and boneless products.

The ruling will be enforced after being published in the Mexican government’s Diario Oficial, probably this week.

USMEF is advising individual companies that have been assessed an antidumping duty to closely examine the official notice to determine whether or not they wish to appeal and on what grounds an appeal could be based.

The Mexican government report was in response to an 83-page decision in Mexico’s antidumping case against U.S. beef released on March 16 by a binational NAFTA panel. Mexico imposed antidumping duties on U.S. beef in April 2000 and amended its antidumping and countervailing duty laws in December 2002.

Under international trade laws, one country accuses another of “dumping” when it believes products are being imported below their cost or home-market price and the country believes its own producers are being injured by those imports.

The U.S. beef industry challenged Mexico’s antidumping measure on beef under Chapter Nineteen of NAFTA. The NAFTA case addressed whether the Mexican determination is consistent with the legal requirements of Mexico’s antidumping law.

The Current Antidumping Tariffs For Beef Web page on www.usmef.org will be modified to reflect the changes once they are official.  

Delays Possible At Border

USMEF-Mexico reports that the Mexican Secretariat of Agriculture (SAGARPA) has begun inspecting all incoming meat shipments in accordance with the letter of the law, which among other things instructs inspectors to check labels and product content. Delays at the border are expected. USMEF recommends that exporters pay careful attention in ensuring that all paperwork is correct.

Japan                                                                                            

Japan-U.S. BSE Consultation Scheduled For Thursday And Friday

On Thursday (Oct. 21) the U.S. and Japanese governments will hold a two-day consultation in Tokyo at the Ministry of Foreign Affairs on the BSE issue, according to a USDA press release.

The two governments will discuss issues related to the resumption of mutual trade of U.S. and Japanese beef, based on the progress made regarding the issues since the third consultation that took place on April 24, 2004.

Participants in the consultation will be as follows:

Japan:

• Kenichiro Sasae, Director-General, Economic Affairs Bureau, Ministry of Foreign Affairs
• Takashi Toguchi, Director-General, Department of Food Safety, Ministry of Health, Labour and Welfare
• Hiroshi Nakagawa, Director-General of the Food Safety and Consumer Affairs Bureau, Ministry of Agriculture, Forestry and Fisheries
• (Observer) Katsuaki Suguira, Director, Information and Emergency Response Division, Food Safety Commission Secretariat, Cabinet Office; and other officials

United States:

• J.B. Penn, Under Secretary for Farm and Foreign Agricultural Services, USDA
• Chuck Lambert, Deputy Under Secretary, Marketing & Regulatory Programs
• Merle D. Pierson, Deputy Under Secretary for Food Safety
• Ellen Terpstra, Administrator, Foreign Agricultural Service
• Stephen Sundlof, Director of the Food and Drug Administration's Center for Veterinary Medicine
• Beth Bechdol, Special Assistant to the Under Secretary for FFAS
• Steve Wickman, Office of Agricultural, Biotechnology, and Textile Trade Affairs, Bureau of Economic and Business Affairs, Department of State

Mexico                                                                                         

Mexican Government Ruling On Compliance With NAFTA Panel Ruling Will Benefit Only Carcass Exports But Will Eliminate 30-Day Rule

The Mexican government reportedly will publish this week a 95-page ruling on how it intends to comply with a report issued in March by a binational North American Free Trade Agreement (NAFTA) panel on Mexico’s antidumping case against U.S. beef.

As it stands, USMEF concludes, the ruling will have little tangible effect on U.S. beef exports to Mexico. Although details are unconfirmed, sources tell USMEF the ruling will:

• Eliminate duties on exports of U.S. beef carcasses (in 2003 the U.S. exported only 1,899 metric tons of beef carcasses to Mexico);
• Remove the requirement that U.S. beef can only be exported to Mexico within 30 days of slaughter;
• Allow U.S. beef companies to resume exporting ungraded beef to Mexico, although they will have to pay the duties previously assigned to them by the Mexican government;
• Recognize name changes of several U.S. companies, allowing them to export to Mexico under their new names and pay the duties previously assigned by the Mexican government instead of the $0.63 per kilogram assigned to all U.S. companies which didn’t receive specific duty rates; and
• Confirm the imposition of antidumping duties on both bone-in and boneless products.

The ruling will be enforced after being published in the Mexican government’s Diario Oficial, probably this week.

USMEF is advising individual companies that have been assessed an antidumping duty to closely examine the official notice to determine whether or not they wish to appeal and on what grounds an appeal could be based.

The Mexican government report was in response to an 83-page decision in Mexico’s antidumping case against U.S. beef released on March 16 by a binational NAFTA panel. Mexico imposed antidumping duties on U.S. beef in April 2000 and amended its antidumping and countervailing duty laws in December 2002.

Under international trade laws, one country accuses another of “dumping” when it believes products are being imported below their cost or home-market price and the country believes its own producers are being injured by those imports.

The U.S. beef industry challenged Mexico’s antidumping measure on beef under Chapter Nineteen of NAFTA. The NAFTA case addressed whether the Mexican determination is consistent with the legal requirements of Mexico’s antidumping law.

The Current Antidumping Tariffs For Beef Web page on www.usmef.org will be modified to reflect the changes once they are official.  

Delays Possible At Border

USMEF-Mexico reports that the Mexican Secretariat of Agriculture (SAGARPA) has begun inspecting all incoming meat shipments in accordance with the letter of the law, which among other things instructs inspectors to check labels and product content. Delays at the border are expected. USMEF recommends that exporters pay careful attention in ensuring that all paperwork is correct.

Japan                                                                                            

Japan-U.S. BSE Consultation Scheduled For Thursday And Friday

On Thursday (Oct. 21) the U.S. and Japanese governments will hold a two-day consultation in Tokyo at the Ministry of Foreign Affairs on the BSE issue, according to a USDA press release.

The two governments will discuss issues related to the resumption of mutual trade of U.S. and Japanese beef, based on the progress made regarding the issues since the third consultation that took place on April 24, 2004.

Participants in the consultation will be as follows:

Japan:

• Kenichiro Sasae, Director-General, Economic Affairs Bureau, Ministry of Foreign Affairs
• Takashi Toguchi, Director-General, Department of Food Safety, Ministry of Health, Labour and Welfare
• Hiroshi Nakagawa, Director-General of the Food Safety and Consumer Affairs Bureau, Ministry of Agriculture, Forestry and Fisheries
• (Observer) Katsuaki Suguira, Director, Information and Emergency Response Division, Food Safety Commission Secretariat, Cabinet Office; and other officials

United States:

• J.B. Penn, Under Secretary for Farm and Foreign Agricultural Services, USDA
• Chuck Lambert, Deputy Under Secretary, Marketing & Regulatory Programs
• Merle D. Pierson, Deputy Under Secretary for Food Safety
• Ellen Terpstra, Administrator, Foreign Agricultural Service
• Stephen Sundlof, Director of the Food and Drug Administration's Center for Veterinary Medicine
• Beth Bechdol, Special Assistant to the Under Secretary for FFAS
• Steve Wickman, Office of Agricultural, Biotechnology, and Textile Trade Affairs, Bureau of Economic and Business Affairs, Department of State