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Washington Ag News December 30th, 2004

"USDA Recognizes Canada as First Minimal-Risk Region"

Outgoing U.S. Ag Secretary Ann Veneman on Wednesday
announced USDA had completed the rule-making process to allow
Canadian live cattle under 30-months of age back across the border
into the United States.

Veneman said the rule making process to allow Canada to ship live
cattle to the U.S. had been incredibly complex. She said USDA had -
in her words - taken the time to do it right. Veneman said the 500-
page rule will be published in the January 4th Federal Register -
and will become effective on March 7th of 2005.

Dr. John Clifford - Deputy Administrator of USDA's Animal and Plant
Health Inspection Service - assured reporters during Wednesday's
teleconference there would be strict controls on Canadian cattle
crossing the U.S. border - including transportation restrictions and
cattle ID requirements.

And - Clifford emphasized - all live cattle from Canada would have
to be slaughtered before reaching 30 months of age.

So with all those restrictions - one might think there probably
won't be a flood of Canadian cattle coming into the U.S. on March
7th. USDA Chief Economist Keith Collins said that depends on what
you call a flood - but that he expects Canada to export two-million
cattle to the U.S. between March 2005 and March 2006.

And Collins admitted that probably won't be bullish for the U.S.
cattle market.

And what of the lawsuit filed by R-CALF USA aimed at keeping the
U.S. border closed to Canadian live cattle? USDA attorney Thomas
Walsh said the new rule made the case irrelevant - at least as far
as the Ag Department's concerned.

Walsh said - absent a new court injunction - or action by Congress
before March 7th - Canadian cattle would again be allowed into the
U.S. at that point.

The new rule applies only to Canada. Other
countries may apply for so-called minimal BSE risk status - but USDA
would then undergo a separate rule making process for each one.

Wednesday's announcement comes almost exactly one month after
President Bush promised Canadian Prime Minister Paul Martin he'd
speed the rule-making process along - and get the U.S. border re-
opened to Canadian cattle.