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 -------------- Summary -------------- ¶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. -------------- Discussions with GRP Officials -------------- ¶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. -------------- GRP IMPORT RESTRICTIONS -------------- ¶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 -------------- COMMENT -------------- ¶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