Thursday, January 21, 2010

Taiwan must handle any beef talks with Canada carefully: MOFA

Taipei, Jan. 21 (CNA) Taiwan would have to carefully handle any negotiations with Canada on lifting a ban on Canadian beef imports, as the controversy over U.S. beef is still raging, a Ministry of Foreign Affairs (MOFA) official said Thursday.

Canada would welcome a reopening of the Taiwan market to Canadian beef, but because of the political storm over U.S. beef imports, Canada is probably hesitant to discuss the issue right now, said Harry Tseng, Director-General of MOFA's Department of North American Affairs.

Canada has not brought up the beef issue recently, Tseng said in response to a question from the media, adding that on the basis of the recent amendment to the Act Governing Food Sanitation, Taiwan would love to sit down with Canada to talk about the issue.

However, a risk assessment would have to be carried out before any such negotiations, he said. The Canadian Trade Office in Taipei declined to comment on the issue. In comparison with the U.S. beef trade issue, Tseng said, the reopening of the Taiwan market to Canadian beef imports would be a "relatively simpler issue" because the bilateral discussions would involve only bone-in beef. Ground beef and offal -- beef parts that are considered at risk of spreading bovine spongiform encephalopathy (BSE), or mad cow disease -- would not be included, he added.

Taiwan reopened its market to Canadian boneless beef in June 2007, almost four years after it imposed a ban when the first case of mad cow disease was reported in Canada.

Currently import of Canadian boneless beef from cattle aged under 30 months is allowed in Taiwan.

According to the Australian Trade Commission, Australia holds the biggest market share of 46 percent in Taiwan for beef and beef products, while New Zealand ranks second with 27 percent, the U.S. third with 17 percent, and Canada fourth with 2 percent.

The Canadian beef import issue is separate from Taiwan's request for visa-free entry of its citizens to Canada, Tseng said, adding that the negotiations will be parallel.

David Lee, Taiwan's representative to Canada, "has been working tirelessly on the visa-waiver program, which is now in the final phase of discussion," Tseng said.

"Hopefully there will be some good news soon," he said.

Also on Thursday, Reuters reported that four senior U.S. Congressmen -- Charles Rangel, Sander Levin, Dave Camp and Kevin Brady -- said in a letter to U.S. trade representative Ron Kirk that the U.S. should not resume trade and investment talks with Taiwan unless Taiwan reverses its ban on certain U.S. beef products.

"We do not believe that the United States should move forward with these talks until Taiwan is once again compliant with its obligations," the congressmen said in the letter.

"Our president was right to suspend the trade and investment framework (TIFA) talks, and I don't see how those could resume until this matter is resolved," Camp said in a separate statement.

Taiwan's legislature voted earlier this month to abrogate a beef agreement reached with the U.S. last year and resume a partial ban on U.S. beef, amid a political controversy in which the opposition accused the administration of ignoring the public's health.

MOFA has asked Taiwan's representative to the U.S. to talk to the lawmakers, especially Rangel who has visited Taiwan almost 30 times, Tseng said.

The banned ground beef and offal would account for only 2 percent of total U.S. beef imports, he noted.

Noting that the first batch of U.S. bone-in beef has arrived in Taiwan, Tseng said the beef market is expected to gradually settle down. Taiwan hopes that the controversy will ease after U.S. beef importers begin to see profits, he added.