BAUCUS HAS A BEEF WITH JAPAN

Senator, Others Unveil Legislation To Encourage Japan To Start Taking Safest, World-class Beef

June 21, 2006

(WASHINGTON, D.C.) – Montana Senator Max Baucus today helped introduce legislation to impose economic sanctions on Japan if that country doesn’t lift its ban on U.S. beef imports.

At a press conference on Capitol Hill, Baucus, wearing a large button that reads “I have a beef with Japan” fully threw his support behind legislation authored by Senators Kent Conrad (D-N.D.) and Pat Roberts (R-Kan.) that would require the Treasury Secretary to impose tariffs on Japanese imports if Japan does not lift its ban by August 31. The tariffs are equal to $3.14 billion annually – roughly the amount U.S. beef exporters lose each year by being shut out of the Japanese market. The sanctions would go into effect on September 30, 2006 if Japan is not taking U.S. beef by that time.

In related news, late Tuesday, U.S. and Japanese trade negotiators agreed that Japan will inspect 35 meatpacking plants eligible to export beef to that country. The move could lead to Japan accepting U.S. beef from cattle 20 months and under of age.

Baucus welcomed the agreement in principle, but said the legislation introduced today is needed to maintain leverage with Japan.

“Japan is a friend, but I have a beef with Japan,” Baucus said at the press conference today. “It is long overdue that Japan start taking U.S. beef. Montana and U.S. beef is the safest, highest-quality in the world – it’s time Japan lived up to its end of the deal.”

Japan banned U.S. beef after a cow in Washington state tested positive for bovine spongiform encephalopathy, or BSE, in December 2003. Japan lifted its two-year old ban on U.S. beef from cattle 20 months of age and under in December of 2005, but suspended imports again in January after a shipment of Japan-bound veal was found to contain a backbone that posed no risk to human health. As a result of Japan’s ban on U.S. beef, American producers have lost $3.14 billion annually.

Baucus is the top Democrat on the Senate Finance Committee, the panel with jurisdiction over international trade policy and has been leading the charge to get bans on U.S. beef lifted. Baucus has met with top Japanese officials and traveled to Japan. Baucus also invited senior Japanese officials to Montana and during their Montana visit, he served Montana beef.

Baucus has also urged Prime Minister Koizumi to lift Japan’s “non-science based ban” on U.S. beef.

“In my experience, the only thing that really gets the Japanese to change is leverage,” Baucus said. “I do not want to find out later that this deal was meant to keep Congress at bay while Prime Minister Koizumi visits Washington next week and then when Koizumi returns to Japan it’s business as usual. It won’t be business as usual until Montana beef is on dinner tables in Japan.”

Baucus is also a senior member of the Senate Agriculture Committee.

The legislation has broad support from both Republicans and Democrats and will be offered to the Senate Agriculture Appropriations bill tomorrow.

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