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International Egg and Poultry Review

by 5m Editor
17 March 2004, at 12:00am

By the USDA's Agricultural Marketing Service - This is a weekly report looking at international developments concerning the poultry industry, this week following the latest news on the U.S. Free Trade Agreements with Thailand and Morocco.

International Egg and Poultry Review - By the USDA's Agricultural Marketing Service - This is a weekly report looking at international developments concerning the poultry industry, this week following the latest news on the U.S. Free Trade Agreements with Thailand and Morocco.

Russia

Russia is starting to feel the squeeze from not only the Avian Influenza situation, but also from a few of the country's prior decisions and their timing. At the end of 2003, Russian poultry traders aggressively brought in supplies to meet their domestic demand, increasing 2003 imports, which were set at 744,000 metric tons (MT.) The increase served as the basis for the 2004 allocations, 1,050,000 MT. The end result was the expansion of domestic stocks at the end of 2003.

Yet, products are not arriving in Russia at normal intervals, due to poultry quota implementation problems and a month-long delay of the distribution of import licences to Russian importers. Even though this problem has been arighted, normal flows of poultry into Russia will not resume until the first half of March 2004, due to shipping times from North and South America.

The larger stocks benefitted local consumers temporarily by suppressing growth in Russian domestic retail prices. However, the suppression did not last long as outbreaks of Avian Influenza in Asia has triggered a reduction of poultry supplies on the world market forcing an upsurge in prices. The result of the prices hikes has caused some major importers to postpone poultry purchases from the U.S. until prices go down.

Consequently, Russian consumers have gone from an abundant, affordable supply of poultry to one that is more expensive and less available. In reaction, consumers are switching to other proteins such as beef and pork as poultry prices move to more comparable prices.

In conclusion, Russia has not been directly affected by the avian flu outbreak, but has most definitely experienced indirect price affects as a result of the global competition from many importing countries.

U.S. Free Trade Agreements with Thailand and Morocco

In October of 2003, President Bush announced the intentions of the U.S. to negotiate a free trade agreement (FTA) with Thailand, as well as numerous other countries throughout the year. Congress has ratified several major trade pacts in the past several years with Jordan, Singapore, and Chile, which in doing so has given the president permission to authorize negotiations for new agreements, which must be approved by Congress but not altered.

U.S. Trade Representative Robert Zoellick and Moroccan Ministerdelegate of Foreign Affairs and Cooperation Taib Fassi-Fihri finally agreed March 2, 2004 to strip away barriers and facilitate trade and investment between both countries. The Administration now has 90 days to notify Congress before signing the agreement, and a not long after a formal notification of intent to sign the FTA will be sent to Capitol Hill. The proposed FTA will expand markets for all agricultural products. U.S. poultry, beef, and wheat will benefit from greater access under tariff-rate quotas, giving producers a competitive advantage over Canada and the EU in Morocco's market. Tariffs will either be significantly reduced or eliminated from the current tariff of over 20 percent placed on U.S. product entering Morocco and the 4 percent average tariff placed on Moroccan products entering the U.S. market. For more information visit: www.ustr.gov

After a round of successful trade talks with Australia, five Central American countries, and Morocco, Zoellick has recently notified U.S. Congressional leaders of the prepared objectives and goals for free trade negotiations between the U.S. and Thailand. Negotiations are open to begin in the next 90 days as stated in the Trade Promotion Authority legislation passed by Congress in August of 2002. Representative Zoellick will also be meeting with Panama, several South American countries, and Bahrain as well in the coming months.

Source: U.S. Trade Representative/U.S. Senator Grassley Press Releases/ International Egg Commission/Various News Wires

WTO Talks to Resume in March

WTO agriculture negotiations are to resume March 22, 2004 in Geneva, in what will be the first full meeting since the failed Cancun ministerial five months ago. Timothy Groser is to chair the open-ended week-long meetings, giving delegations a chance to meet and explore options for compromise and convergence. Negotiations are to be transparent with regular opportunities for small group meetings designed to provide feedback to the WTO membership.

Source: International Egg Commission

Free Trade Agreement between Japan and Mexico

After a year and a half or 14 rounds of negotiating, Japan and Mexico have finally come to terms. It is the first pact between Japan and a Latin American nation, and Mexico's first foothold in Asia. Key issues, including agricultural and industrial trade issues, were finally agreed upon on the evening of Tuesday March 9, 2004.

Japan has agreed to lower its' tariffs on Mexican agricultural products such as meat, eggs, tomatoes, oranges, wine and tobacco as well as give them access to the third largest market in the world, Japan, after the U.S. and the European Union. In turn Mexico has agreed to lower its tariffs on Japanese industrial products such as steel and cars by more than 40 percent. Both governments have agreed to eliminate auto and agricultural tariffs within 10 years.

The agreement is yet to be signed or ratified. Presently, Japan and Mexico are slated to enter into free-trade talks; Japan with Malaysia, the Philippines, South Korea, and Thailand; and Mexico with Uruguay and other countries in a proposed Free Trade Zone of the Americas.

Source: Various News Wires

Egg Imports from Mexico

The USDA Animal Plant Health Inspection Service recently completed work with Mexican officials to develop a certification process for the entry of shell eggs for the table market from two Mexican states, Sonora and Sinaloa.

Source: U.S. Senator Grassley Radio Releases

To view the full report, including tables please click here (PDF Format)

Source: USDA's Agricultural Marketing Service - 16th March 2004

5m Editor