Tokyo, Japan. October 23. U.S. and Japanese officials in Tokyo today reached a framework agreement that will permit the resumption of beef trade between the two countries following a ten-month interruption. The agreement was reached after three days of prolonged negotiations to determine the conditions under which the trade will be resumed. The officials issued a joint statement that highlights the various provisions of the agreement.

Trade between the two countries will resume following completion of regulatory processes in both countries. Japan now is revising domestic regulations to alter its BSE cattle testing requirements and other procedures. The United States will initiate rulemaking procedures relating to importation of Japanese specialty beef.

A special marketing program will be developed for Japan under which USDA's Agricultural Marketing Service will certify that exported products meet the terms of the agreement. The United States now will be permitted to sell beef and variety meats to Japanese importers from animals below 21 months of age. Animal age will be determined by a combination of production records and physiological means (grading system). This marketing program will be evaluated by the countries in July 2005 and modified as appropriate. This evaluation will be based in part on an independent review of the marketing program and the BSE situation conducted by experts from the World Organization for Animal Health (OIE) and other organizations.

Japan was the largest market for U.S. beef and products with sales in 2003 before the ban was imposed exceeding $1.7 billion. Exports in total account for well over 10% of the total value of U.S. beef output. U.S. sales to Japan were suspended following the discovery of the one case of BSE from an imported cow on December 23, 2003 in Washington State.

The U.S. trade delegation, led by Dr. J. B. Penn, Under Secretary for Farm and Foreign Agricultural Services, included other officials from USDA, the Department of State, Food and Drug Administration, and the Office of the U.S. Trade Representative. The Japanese interagency delegation was led by Mr. Kenichiro Sasae, Director-General, Ministry of Foreign Affairs.

The joint press statement issued by the officials in Tokyo can be found on the USDA web site at www.usda.gov.