Avian Flu-Related Trade Restrictions on Poultry

UNCLAS SECTION 01 OF 03 MANILA 005864

SIPDIS

STATE FOR OES/IHA FOR JKAUFMANN
STATE FOR INR/EAP FOR JSTROTZ
STATE PASS USDA/FAS/DL&P FOR WETZEL & MAGINNIS
STATE PASS USDA/FAS/ITP/AAD FOR GRUNENFELDER & ALEXANDER
STATE PASS USDA/FAS/FAA FOR YOUNG
STATE PASS USDA/APHIS/IS FOR SHEESLEY
STATE PASS USAID FOR DCARROLL AND ACLEMENTS
BANGKOK FOR REO JAMES WALLER
CIA FOR NATIONAL INTELLIGENCE COUNCIL NIO/EA

E.O. 12958: N/A
TAGS: ECON PINR SOCI EAGR SENV TBIO TSPL RP
SUBJECT: Avian Flu-Related Trade Restrictions on Poultry

REF: A) STATE 216147 B) MANILA 5458 C) MANILA 5393
D) MANILA 5291 E) MANILA 5059 F) MANILA 4278

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Summary
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1. This cable confirms delivery of ref A talking points
to the Department of Agriculture (DA) and the Department
of Trade and Industry (DTI). It also provides
information requested in ref A on poultry market trends
and GRP import restrictions. The GRP appears to follow
guidelines of the World Organization for Animal Health
(OIE) when restricting imports from countries with
notifiable avian influenza (NAI). The GRP has no AI-
related import restrictions affecting US producers, and
domestic market demand for poultry products has been
stable. Japan's ban on Philippine poultry, based on an
unconfirmed report of AI in the Philippines, affects U.S.
poultry processed here for the Japanese market. END
SUMMARY.

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Discussions with GRP Officials
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2. Econoff delivered talking points in ref A to DA
Undersecretary for Policy and Planning Segfredo Serrano
and DTI International Trade Director Ramon Kabigting,
urging continued support for OIE guidelines and WTO
principles in imposing AI-related import restriction on
poultry. GRP officials stated that the GRP adheres to
these rules and plans no change in policy. They did not
have other specific comments.

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GRP IMPORT RESTRICTIONS
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3. Under the GRP's avian flu prevention program, the
Secretary of Agriculture (and "Anti-Avian Flu Czar") is

SIPDIS
authorized to issue Administrative Orders (AO)
establishing AI-related import restrictions based on OIE
input. As of December 14, the GRP maintains import
restrictions on birds, poultry and unprocessed bird and
poultry products from 16 AI-affected countries: Cambodia,
Canada (British Columbia),China, Croatia, Hong Kong,
Indonesia, Japan, Kazakhstan, Korea, Malaysia, Mongolia,
Romania, Russia, Thailand, Turkey and Vietnam. Of these
countries, only Canada exports poultry products to the
Philippines. Import restrictions were temporarily
imposed during March-September 2004 on three U.S. states:
Maryland, Texas and Delaware. A complete list of NAI-
related import restrictions in paragraph 6 below includes
restrictions that were subsequently lifted.


4. Avian influenza has not significantly affected the
Philippine poultry industry, as production and price
levels have remained stable since 2002. The DA estimates
that poultry production volume grew by 1.69 % in January-
September 2005 from the same period in 2004. This
followed year-on-year growth of 3.62% in 2004. Revenues
increased by 4.23% at constant prices to surpass 116
billion pesos ($2.1 billion) in 2004, roughly 15.5% of
agricultural output. Rumors of possible AI cases have
temporarily reduced demand and prices in limited regions
(reported in ref C),but overall prices have been stable.
DA reported that average farm gate prices increased by 2%
during January-September 2005 from the same period in

2004.


5. Japan imposed import restrictions on Philippine
poultry following the announcement of a suspected NAI
case in the Bulacan region of the Philippines in July
2005, reported in ref F. At that time, routine screening
of exported duck eggs revealed evidence of antigens to a
possible NAI strain. The Australian reference lab
examined these materials but found no confirmation of
this finding. The Australian lab was unable to isolate a
virus, but it could not confirm the absence of NAI virus.
Surveillance of poultry near Bulacan revealed no further
evidence of NAI, so the GRP and OIE concluded that the
duck was exposed to a low-pathogenic avian influenza
virus. According to the Japanese Ag Attache, Japan is
reviewing information provided by the GRP to determine
whether to lift the import ban.


6. COUNTRIES AFFECTED BY AI-RELATED GRP IMPORT
RESTRICTIONS ON POULTRY AND POULTRY PRODUCTS:

COUNTRY DATE BANNED DATE LIFTED

China 28 Jan 2004
Vietnam 3 Feb 2004
Japan 3 Feb 2004 16 Sept 2004
(reinstated 12 Sept 2005)
Thailand 3 Feb 2004
Indonesia 3 Feb 2004
Cambodia 3 Feb 2004
Lao PDR 3 Feb 2004
Pakistan 3 Feb 2004
Taiwan 3 Feb 2004 31 Aug 2004
B Columbia, Canada24 Feb 2004 13 Sept 2004
(reinstated 29 Nov 2005)
Maryland, USA 9 Mar 2004 6 Sept 2004
Texas, USA 24 Feb 2004 6 Sept 2004
Delaware, USA 9 Feb 2004 6 Sept 2004
South Africa 12 Aug 2004 26 Oct 2005
Malaysia 20 Aug 2004 18 Jul 2005
South Korea 3 Feb 2004 17 Oct 2004
North Korea 29 Mar 2005
Russia 18 Aug 2005
Kazakhstan 18 Aug 2005
Mongolia 18 Aug 2005
Romania 18 Oct 2005
Turkey 18 Oct 2005
Croatia 2 Nov 2005

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COMMENT
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7. The GRP shares the U.S. interests in following OIE
guidelines and limiting AI-related import restrictions
only to those countries that are AI-affected. The
Japanese ban on poultry products from the Philippines may
have the unintended effect of discouraging transparency
in reporting possible AI cases. It also underscores the
importance of strengthening the GRP surveillance capacity
for avian flu, reported in ref E, to provide credible
evidence that the Philippines remains free of avian flu.

JONES