May 9, 2006: Beef trade war between US and Japan simmering since Jan 20 this year, after Brooklyn meatpacker Atlantic Veal & Lamb, accidentally the meatpacking company shipped to Tokyo boxes of veal containing a spinal column material. Last year, following outbreak of Mad Cow disease, US had specifically agreed to exclude any such material considered as “Specified Risk Material” in any beef export consignment to Japan.

While US agrees that the meatpacker erred while shipping but insists that the shipment including the spinal cord parts was safe and not contaminated. It may be noted here that this beef trade is a multi billion dollar industry and is threatening to effect US-Japan relations. Japan, on the other hand, is forced to take a hard stand on beef standards following public outcry over scare of Mad Cow Disease, which reached epidemic proportions in late nineties.

Japan’s domestic food chain industry is also suffering because of this ban as it imports more than 100,000 tons of beef each year.

US insists that there are no fundamental problems with its inspection system and is losing patience because of Japan’s continued adamant stand, raising the chances of sanctions against Japan. Japan on the other hand decries bullying tactics of US and alleges that US does not appreciate the domestic compulsions of Japan to act tough.

Diplomats in both the countries are working overtime to resolve the dispute amicably before the visit of Japanese Prime Minister to US scheduled some time in June 2006.

So far Australian Beef manufacturers are emerging as biggest beneficiary of Japan’s ban on US exports. Japan relies heavily on imports to meet its domestic consumption demand of beef.