CRS Says Antimicrobial Use Restrictions Could Adversely Affect U.S. Meat Trade
The Congressional Research Service has issued a report (R41047) on the potential trade implications of restrictions on antimicrobial use in animal production.
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According to the report, although antibiotic use in animals has not been a significant factor affecting U.S. trade in meat products to date, it seems clear that existing and future policy changes in the European Union, South Korea, and New Zealand could result in adverse effects on U.S. poultry and livestock producers and exporters.
CRS states that absent changes in the U.S. meat market that would restrict antimicrobial drug use in food animal production, it is possible that the U.S. could lose its export markets to Korea, Japan, and Taiwan, which account for 26% and 43% of total annual U.S. beef and pork exports, respectively. CRS also states that U.S. export competitors, such as the EU and other major net-exporting countries, may be better poised to capture a larger share of world meat export markets.
According to the report, rather than raise U.S. meat exports, implementing policy to restrict antimicrobial use could decrease overall U.S. meat exports due to likely cost implications for growers. Overall production costs could rise, which could potentially lower U.S. meat production and reduce supplies available for export. Additionally, U.S. prices might increase relative to those of competitors and remove any price advantage U.S. meat exporters might have currently. CRS states that either with or without similar policy changes in the U.S. restricting use of these drugs, U.S. meat exports to world markets will be adversely affected.