Cellucci says border will open

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U.S. on track to opening border to Canadian cattle March 7, ambassador says




TORONTO, Feb 23, 2005 (The Canadian Press via COMTEX) -- Washington is on track to partially reopening the border to live Canadian cattle March 7 despite growing domestic political and legal opposition, the U.S. ambassador to Ottawa said Wednesday.

However, it will take at least six months to a year for full trade to resume after the devastating border closure prompted by the discovery of a case of mad cow disease in Alberta almost two years ago.

Speaking to the Ontario Cattlemen's Association, U.S. Ambassador Paul Cellucci said he's not overly concerned that either the courts or Congress will prevent next month's reopening to live cattle under 30 months of age next month.

"We do not see that as a serious risk at this point," Cellucci said.

The U.S. Department of Agriculture has the "discretion" to make decisions based on science and the government is confident the courts will uphold that power, he said.

The "minimal risk rule" devised by the department to stop the spread of the brain-wasting disease is legally "bullet-proof," Cellucci said.

A U.S. cattlemen's group is challenging the department in court March 2 but Cellucci said even if they win, the government will act quickly to appeal.

He also said Congress has the ability to override the Agriculture Department and keep the border shut, but said it's a rarely used power.

Despite political opposition prompted by complaints from American ranchers, support in Congress for resuming the cattle trade is strong, he said.

And American meatpackers were in U.S. federal court on Wednesday to challenge the ban on shipments of older Canadian cattle.

They argued it's arbitrary for the government to say those animals are at greater risk of developing mad cow disease.

However, Cellucci raised a warning flag.

The recent discovery of two more infected cows in Canada, which prompted Washington to delay opening the border to older animals beyond March 7, is still under investigation, he noted.

The delay, he said, was due to health concerns, not political pressure from American ranchers, and the necessary steps to comply with the new risk rules will have to be followed.

Canada's beef and cattle industry was shut out of the U.S. market in 2003 after the discovery of the first mad-cow case.

Estimates are that the closure cost the Canadian beef industry about $7 billion over the last 21 months. About $1 billion of that is due to the loss of trade in older animals.

Cellucci acknowledged the toll the closure has taken.

"We know the border closure to trade in live cattle has been extremely difficult for Canadian cattle and dairy farmers and to the meat-packing industry on both sides of the border," he said.

"But in the long run, taking all the careful steps we have taken will pay off in continued public trust in our food supply."

[Tommy]

Sash...A U.S. cattlemen's group is challenging the department in court March 2 but Cellucci said even if they win, the government will act quickly to appeal.

That also goes for the cattlemen's group, they will act quickly to appeal if they lose the decision.

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[Jason]

The border will re-open, the real question is will there be any cattle to move? Packers are working short weeks here and demand is still falling.

I expect Agmans predictions to be right that prices will continue to fall until demand again starts to climb or supply is reduced.