Livestock - Economics and Trade

Question 1

What is NAFTA?

Answer 1

1994
reduces/eliminates trade barriers between Mexico, Canada, and US
rapid impact in ag sector

Question 2

What effects did NAFTA have on the ag sector?

Answer 2

Mexico increased exports 9% annually
US increased exports to both countries
poverty rate declined in Mexico
Mexico started growing meat for US market
food prices declined in Mexico
specialty crop production declined in US (cheaper labor costs in Mexico)

Question 3

What are the key WTO articles concerning ag?

Answer 3

Agreement on Agriculture

Agreement on Application of Sanitary and Phytosanitary Measures

Question 4

What are the characteristics of hormone use in beef production?

Answer 4

growth-promoting are widely used
90% of feedlot cattle worldwide
used by US, Japan, Australia, Mexico, Canada, others
animals grow larger, more quickly, and with less feed

Question 5

What is the EU hormone ban?

Answer 5

precautionary principle
bans 6 synthetic hormones since the 1980s
prohibits imports of products that used these
claim: consumer safety, animal welfare, meat quality
both producers and consumers strongly support ban

Question 6

What are the key SPS articles?

Answer 6

sanitary measures must have: sufficient scientific evidence, can’t discriminate between members, measures should be based on international standards, new measures must have scientific justification or risk assessment

Question 7

What is considered in a risk assessment?

Answer 7

available scientific evidence
methods of evaluation
economic factors
trade effects

Question 8

Risk assessment decision on beef hormones

Answer 8

EU measure not based on risk assessment
EU in violation of WTO law
US can use retaliatory trade measures (on any product)

Question 9

What was the Tariff Act of 1930?

Answer 9

required COOL on all imported products for the “ultimate purchaser”
if a product undergoes “substantial transformation” than the processor is the ultimate purchaser

Question 10

What is the Meat and Poultry Inspection Acts in relation to COOL?

Answer 10

require COOL to appear in English on immediate containers of meat and poultry products entering US
FSIS inspection establishment is the ultimate purchaser
minimal processing

Question 11

What are the COOL basics?

Answer 11

administered by AMS
2002 and 2008 farm bills
2005 - rule in effect for fish and shellfish
2009 - final rule in effect for all covered commodities

Question 12

What items are covered under COOL?

Answer 12

ground and muscle cuts of beef, pork, lamb
farm-raised and wild fish and shellfish
peanuts, pecans, macadamia nuts
perishable ag commodities (fruit and veg)
goat meat and chicken
ginseng

Question 13

What exemptions exist under COOL?

Answer 13

covered items are an ingredient in processed foods

Question 14

What establishments are covered under COOL?

Answer 14

only PACA regulated retailers (purchase at least $230,000 a year in fresh fruit and veg)

Question 15

What establishments are exempt under COOL?

Answer 15

food service establishments

Question 16

How is “origin” defined for COOL?

Answer 16

US origin = items for animals exclusively born, raised and slaughtered in the US
for ground meat and chicken - label must list all “reasonably possible” countries of origin
multiple countries origin - label all the countries