In a White House ceremony announcing the Coronavirus Food Assistant Program (CFAP) the President questioned the desirability allowing importation of live cattle in the U.S. and instructed the Secretary of Agriculture, Dr. Sonny Perdue to terminate trade deals allowing live cattle to be imported into the U.S., presumably at the expense of domestic farmers.
Live cattle are only imported from Canada and Mexico and are allowed in terms of the USMCA only recently ratified. Imports of cattle on the hoof are necessary to stabilize supplies and markets and have functioned to the benefit of the U.S. and our neighbors for many decades.
Marty Smith, President of the U.S. National Cattlemen’s Beef Association commented, “this was something I wish the President had not said.” Export of 1.2 million head from Mexico to the U.S. in 2019 was more than balanced by exports of processed beef back to Mexico. Forcing Mexico to retain slaughter stock will lead to expansion of their domestic packing capability ultimately to the detriment of the U.S. and farmers over whom the President is apparently so concerned.
A number of economists at Land Grant universities have pointed to the benefits of integral and mutually beneficial trade agreements that are supported by the Canadian Cattlemen’s Association and the Mexican Cattle Confederation.
In the interest of regular trade and avoiding contentious and illegal bans, it is hoped that the presidential comment was off-the-cuff remark and is not indicative of a change in U.S. trade policy which would be a contravention of the USMCA.