Why We Care

For the last two decades, the U.S. and Canada have created a strategic relationship in the beef sector. Historically, livestock and beef were traded between the two countries, with each county doing what it is best suited to based on infrastructure, employment, climate and expertise.

For example, U.S. companies have built beef packing plants along the U.S.-Canada border because of the ready supply of Canadian cattle - a supply that has ceased since May 2003. As a result, U.S. plants have reduced capacity due to a shortage of cattle, while Canadian plants are expanding capacity to process the glut of cattle in their country. These bricks and mortar investments will be permanent and stand to make Canada a competitor to the U.S., rather than the historical strategic partner it has been.

Likewise, lean beef trimmings from Canada have been an important source of supply to U.S. ground beef processors. Without access to those trimmings, the available supply in the U.S. has tightened and prices have gone up markedly, sending retail ground beef prices skyrocketing to the highest levels in history.

In the face of high beef prices, consumers switch to other protein sources.

Although the U.S. government has worked to open the borders, a group of anti-trade cattlemen profiting from the record high U.S. cattle prices are seeking to maintain a closed border. They've waged a successful legal war to date that has halted U.S. Department of Agriculture initiatives aimed at resuming beef and cattle trade with Canada.

All the while, international trade guidelines set by the Office of International Epizootics say that trade between the U.S. and Canada should resume and that both U.S. and Canadian beef are safe.

In other words, the short term economic gains of a small group of vocal anti-trade cattlemen are leading U.S. trade policy and stand to shrink the U.S. beef industry long-term. This result is bad for the beef industry, bad for the U.S. economy and bad for consumers.

Beef trade with Canada must resume now. The U.S. government says so. Scientific experts say so. And the world's leading authority on animal health standards say so.