WASHINGTON — U.S. ranchers and processors lost almost $11 billion in revenue between 2004 and 2007 after major importers barred U.S. beef following the discovery of mad cow disease in the United States, according to a government report issued on Tuesday.
The International Trade Commission said trade restrictions put in place because of mad cow disease cost the U.S. beef industry between $1.5 billion and $2.7 billion in annual revenue between 2004 and 2007. Japan and Korea were responsible for $9.4 billion of the $11 billion estimated in total lost revenue.
Beef shipments from the United States were virtually halted after it found its first case of mad cow disease in December 2003 in Washington State.
Global U.S. beef sales have been edging higher, but not quickly enough for the Bush administration, or for the beef industry, which complain of age restrictions and inflexible import rules.
The ITC said that, while governments will immediately close their borders when food safety concerns arise, it can take several years before the restrictions are lifted.
"The U.S. (Bovine Spongiform Encephalopathy) incident provides an example of this imbalance between imposing and relaxing trade restrictions," the ITC said in a 279-page report.
Source: Reuters