Update on the Canadian/US Border Closure due to BSE
by Karen Conyngham, ILR representative to the US Animal Health Assn.


Border Graphic

This is an extremely condensed history of the closure of the US/Canadian border to camelid movement due to the finding of BSE in Canada in 2003.

On May 20, 2003, Canada confirmed the finding of bovine spongiform encephalopathy (BSE) in an Alberta steer. Upon release of this news, the US Dept. of Agriculture (USDA) announced the closure of the US/Canada border to movement of live ruminants, defined by USDA as any animal that ‘chews the cud.’ Camelids therefore were also included in this ban along with cattle, sheep, goats, bison and cervids. Ruminant products were likewise banned. Until this time, trade in beef and cattle between Canada and the US had been a very integrated market. The adverse effect the closure had on Canadian cattle ranchers was swift and sharp. Canadians were reliant on US processing plants to handle their cattle and prices for Canadian cattle declined heavily despite continued support for Canadian beef by Canadian consumers. To date, BSE in Canada has cost the Canadian economy at least $7 billion.

On December 23, 2003, the US diagnosed its first BSE animal – a dairy cow – in Washington state. This animal was quickly traced back to a Canadian herd but at the time of slaughter it was owned by a US farm, hence it is counted as one case of BSE in the US. This finding resulted in foreign markets in turn closing their borders to US cattle and beef. The main foreign trading partners for US beef are Mexico, Japan, Taiwan, S. Korea and Hong Kong. Canada likewise suspended trade in live cattle with the US but in a significant move, Canada did NOT restrict movement of camelids from the US. Therefore, US llamas and alpacas can still move north into Canada, but at present they cannot return.

In early 2004, USDA reopened the comment period on a proposed final rule to place Canada into a “Minimal-Risk” category that would allow resumption of movement for cattle under 30 months of age. Many camelid owners from both sides of the border, the Canadian government, the Camelid Alliance and the US Animal Health Association responded with the request that camelids be exempted from movement restrictions. USDA announced in late December 2004 that the final minimal-risk rule would be adopted and implemented on March 7, 2005. In their decision, the USDA appropriately ruled that camelids and cervids are not part of the epidemiology of BSE in Canada and that movement of both species should resume.

During the nearly 2 years that the border closure has been an issue within the North American animal health community, a protectionist cow-calf producer organization, R-CALF (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) has been at the forefront, working to keep the border closed even as other cattle groups such as the National Cattlemen’s Beef Association and the major meat packers were calling for the border to be opened. R-CALF threatened to sue USDA if the minimal-risk rule was implemented and on Jan. 31, 2005, they filed suit in the 9th District Court in Montana seeking an injunction to block the minimal-risk rule.

The minimal-risk rule has the full support of both President Bush and his new Agriculture Secretary, Mike Johanns. Sec. Johanns has declared that full resumption of international trade in cattle and beef is his primary focus. Resumption of trade with Japan is seen by the Administration as key to opening the rest of the foreign markets to US beef so intense pressure is being brought upon the Japanese to get their Food Safety Commission to agree to allowing import of beef from animals under 20 months of age (the youngest age at which BSE has been diagnosed). As of the writing of this article, the Japanese are wavering slightly toward reducing their strict standards determining the age of cattle and on 100% testing of all slaughtered bovines for BSE, but no timeline for resumption of trade has been set. In 2003, Japan accounted for about $1.7 billion in US trade in beef.

On March 2, 2005, Judge Richard Cebull (9th District Court) temporarily enjoined implementation of the minimal-risk rule, as R-CALF requested. Arguments made before the judge centered wholly on the bovine section of the rule and no mention was made of the other species involved.

USDA filed an appeal to the temporary injunction with the 9th Circuit Court of Appeals in California on March 17th. Also on March 17th, Judge Cebull set a date of July 27, 2005, for a further hearing in the R-CALF suit. On March 22nd, the National Meat Association was joined by the Canadian Cattlemen's Association and Alberta Beef Producers in requesting intervener status and NMA filed an initial brief with the Court. USDA and R-CALF had until March 29th to file responses, then the Court of Appeals would determine whether or not to grant a hearing.

Until such time as this issue is resolved in the courts, USDA advised the ILR that movement for all the affected species will remain at a standstill. The ILR will receive continuing updates from USDA on the situation as it evolves.

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