**Animal and Plant Health**

*Remarks by Bruce I. Knight, Under Secretary for*

*Marketing and Regulatory Programs*

*U.S.-Mexico Consultative Committee on Agriculture*

*Washington, DC*

*May 8, 2007*

I am delighted to join you this morning to talk for a few minutes about
some important animal and plant health issues.

Over the past nine months, I have appreciated the opportunity to get to
know and work with our Mexican counterparts. We share mutual respect and
a mutual desire to support and enhance trade between our countries.

Mexico continues to be one of our top agricultural trading partners.
Last year we sent nearly \$10.9 billion in agricultural goods across the
border and imported about \$9.4 billion from our neighbor to the south.

We have a positive and mutually beneficial relationship. That's why it's
so important for us to work together to resolve any concerns that affect
trade.

I want to touch on just a few current issues, and then Dr. DeHaven will
speak about several matters in more detail.

**[What's Happening in California]{.underline}**

Let's talk first about what's happening in California. On February 1,
Florida, Hawaii and California became eligible to import Mexican Hass
avocados in line with USDA's 2004 avocado import regulation. The other
47 states were already eligible.

But when Mexican avocados reached the California/Arizona border,
California Department of Food and Agriculture inspectors rejected them
because they detected armored scale. This contradicts the national
position on armored scale.

We don't see it as a problem.

APHIS' analysis in 1985 and again two months ago affirmed that armored
scale present on fruit for consumption does not pose a significant risk
to U.S. agriculture. As a result, we told California "No" when the state
asked us to notify its agriculture department when U.S. border
inspectors spot scale on fruit and vegetables coming into the U.S. from
Mexico.

Instead, we agreed to establish a technical working committee to review
the differing positions on quarantine for armored scale. That committee,
which will include a Mexican scientist, is scheduled to meet for the
first time in Los Angeles, beginning tomorrow.

There's been additional activity as well---the California legislature
has gotten involved, and California Agriculture Secretary Kawamura and
others recently toured avocado orchards in Mexico.

Nevertheless, I want to assure you that we stand by our decision to
permit importation of Mexican avocados in all 50 states. Further, we
think the Mexican Hass avocado program represents a highly successful
effort to reduce risk and open trade. It's also an excellent example of
USDA-SAGARPA cooperation.

The bottom line is this: In the 8 years the program has been in place,
more than 32 million Hass avocados have been sampled and cut in Mexican
production areas. And no high-risk pests have been detected on Mexican
Hass avocados at U.S. ports of entry.

So, we understand and share Mexico's concern about California's actions.
It's not federal policy to reject Mexican fruit and vegetables based on
detections of scale insects---on avocados or mangos or citrus or bell
peppers.

These are issues we will be discussing at the technical level. We look
forward to resolving this matter and clarifying the acceptability of
Mexican avocados and other fruits and vegetables for importation---into
any state in the U.S.

**[OIE]{.underline}**

I want to also look at livestock trade. To continue to foster long-term
trading relationships, I believe we need to harmonize national
standards---yours and ours---with science-based international standards.

Toward that end, last fall the U.S. submitted a detailed application
package to the OIE---the World Organization of Animal Health---to be
recognized as a country with negligible or controlled risk for BSE. I
understand Mexico intends to submit an application to OIE also, and I
encourage your efforts to do this.

Right now, the U.S. is moving forward in the OIE approval process. We've
passed the first stage. The ad hoc group of experts reviewing our
application recommended a designation of "controlled risk" for the U.S.
They've recommended the same designation for Canada.

That's good news. But it doesn't mean this is a done deal. The country
delegates to OIE must still decide on the committee's
recommendations---for us and other countries in the process for 2007.
That decision will take place next week in Paris.

The official OIE classification essentially gives the United States an
international clean bill of health for the national cattle herd. It says
we have the safeguards in place to ensure the health of animals and meat
we export.

Any nation that recognizes the OIE standards should then be open to
importing U.S. beef. The key is for our trading partners to adopt the
OIE standards as their own standards for safe trade. And we must do the
same.

**[MRR2]{.underline}**

That's where the minimal risk rule comes in. It's our first step toward
harmonizing U.S. standards with the OIE standards. We want to move
quickly and expeditiously to get this rule in place. This rule expands
the list of allowable imports from countries with minimal risk of
BSE---specifically Canada.

I know this is of interest to you as well since without this rule, we
are unable to permit Canadian dairy cattle that you would like to import
to pass through the United States.

Right now, we're in the process of evaluating nearly 400 comments we
received on our proposed rule. APHIS expects to publish a final rule by
the end of the summer. Once Canadian breeding cattle can enter the U.S.,
then dairy cattle can transit through our country to be imported into
yours.

After this rule is finalized, our next step will be to publish general
rules to bring all U.S. standards in line with international
requirements. Then we'll be pushing all our traditional trade partners
who take red meat to accept the OIE designation and restore or expand
their markets.

**[Conclusion]{.underline}**

I appreciate the opportunity to join our Mexican friends and
counterparts this morning. I look forward to continuing our positive
working relationship for the benefit of the farmers, ranchers and
consumers in both our countries.