U.S. BEEF: AGRICULTURE MINISTER VOICES CONCERNS OVER

UNCLAS SECTION 01 OF 02 TOKYO 002410 SENSITIVE SIPDIS STATE PASS USTR FOR AUSTR CUTLER AND DAUSTR BEEMAN USDA FOR [FAS GSM JOHN BREWER, SUZANNE HALE, AND DAN BERMAN] E.O. 12958: N/A TAGS: ETRD EAGR PGOV JA SUBJECT: U.S. BEEF: AGRICULTURE MINISTER VOICES CONCERNS OVER CO-MINGLED U.S. BEEF WITH AMBASSADOR SENSITIVE BUT UNCLASSIFIED. NOT FOR INTERNET DISTRIBUTION ¶1. (SBU) Summary: Minister of Agriculture, Food and Fisheries (MAFF) Hirotaka Akamatsu told the Ambassador October 14 that Japanese consumers will refrain from purchasing U.S. beef and beef products so long as food safety concerns remain. He cited the recent incident involving a U.S. meat packing plant that is in violation of Japan's import agreement as "regrettable." Akamatsu declined to say whether Japan was prepared to adopt import regulations for beef that are both science-based and in accordance with international guidelines. Cordial throughout the meeting, Akamatsu repeatedly stated he wants to work closely with the USG on agriculture-related issues. He expressed optimism the Doha Development Agenda (DDA) will be concluded and said he hopes Secretary Vilsack will accept his invitation to attend next year's APEC Agriculture Ministerial meeting in Niigata. End summary. ¶2. (SBU) During an initial meeting with Agriculture Minister Akamatsu October 14, the Ambassador noted the importance of MAFF in supporting our important bilateral economic and trade relationship, and expressed optimism that any policy differences could be resolved by working together. Akamatsu noted close trade ties between our two countries are one of the reasons why he paid his first overseas visit as Minister to the U.S. He said he used the opportunity to speak with USTR Kirk and Secretary Vilsack about the need to work closely together to conclude a successful WTO Doha Development Agenda (see para 6). Beef: A "Regrettable Incident" -------------- ¶3. (SBU) Unfortunately, Akamatsu said, he had to learn during his visit to the U.S. about the "regrettable incident" involving a U.S. meat packing plant and the violation of the terms of the U.S.-Japan beef Export Verification (EV) program. Minister Akamatsu noted this was the third such violation of the EV program by the same U.S. plant (this is in fact the plant's second violation) and that the GOJ has identified a total of 13 violations since Japan (partially) reopened its market to U.S. beef and beef products in 2006. He said his ministry is obligated to respond to concerns expressed in the media and the general public about why these violations keep occurring. Although he claimed to understand the U.S. desire for Japan to adopt beef important regulations that are consistent with World Animal Health Organization (OIE) recommendations, Akamatsu said a move in this direction continues to be difficult due to the frequency of import violations and resulting food safety concerns by Japanese consumers. ¶4. (SBU) The Ambassador noted the frequency of violations are less about actual safety issues and more about the GOJ's unnecessarily complicated import regulations that are out of synch with those maintained by other key trading partners. If Japan were to adopt OIE guidelines for trade in beef and beef products, violations such as these would not occur. The Ambassador emphasized the U.S. is committed to exporting safe and reliable beef product in accordance with international standards and science. He expressed the USG's desire to work with Japan in adopting import regulations that align with these widely recognized standards. Minister Akamatsu declined to comment when asked if Japan intends to move towards OIE consistent regulations with respect to trade in beef and beef products. ¶5. (SBU) Akamatsu likened the Japanese consumer's view of U.S. beef to that of Chinese dumplings, which raised alarms in 2008 following a scandal involving pesticide-laced product; as many as 180 people fell ill after consuming the tainted dumplings. Chinese-origin foods since then have been viewed with suspicion. For this reason, the U.S. should strive to prevent another beef export packing violation; otherwise, it will be difficult to establish widespread public acceptance of U.S. beef in Japan, Akamatsu asserted. He TOKYO 00002410 002 OF 002 attributed the sharp drop in Japanese consumption of U.S. beef compared to pre-BSE levels to safety concerns among Japanese consumers (as opposed to the GOJ's highly restrictive access agreement). Japanese consumers want food that is both safe and delicious, but they will refrain from buying U.S. beef until they are reassured that it is reliable. Minister Akamatsu said the GOJ wants to work with the USG to resolve the beef issue and expressed appreciation for the Ambassador's offer to share information about the safety of U.S. beef. (Note: Japan completely banned all imports of U.S. beef and beef products in 2003 following a single case of BSE in Washington State and subsequently agreed to a partial and much more restrictive reopening of its market in 2006. End note.) The Doha Development Agenda and APEC -------------- ¶6. (SBU) The Ambassador said close collaboration is imperative for a successful conclusion of the WTO Doha Development Agenda (DDA). Akamatsu concurred, stating the DDA is being pre-negotiated at the working level and that he expects the round will be completed. On the Asia-Pacific Economic Cooperation (APEC) forum, he said he had invited Secretary Vilsack to attend the APEC Agricultural Ministerial in October 2010 in Niigata. The Ambassador commented that Japan and the U.S. have a real opportunity to strengthen the organization's role in liberalizing trade as consecutive APEC Chairs in 2010 and 2011. Biotechnology -------------- ¶7. (SBU) The Ambassador noted the critical role agricultural biotechnology plays in food production. Minister Akamatsu replied that there are different opinions about the safety of biotech-derived food products, but that Japan and the U.S. should work closely together on research and regulation.