Karnal Bunt

1
Karnal Bunt

• Background on the Disease
• Measures taken in U.S
• Measures taken regarding exports
• U.S. - Mexico regulatory interaction
• U.S. - Canada regulatory interaction
• What we have learned

2
Disease Background

• Fungal Disease (Tilletia Indica Mitra)
• First discovered 1931, Karnal, India (Punjab)
• Exists in Pakistan, Iraq, Nepal, Afghanistan,
  Mexico and United States (others?)
• No human health risk
• Yield Impact - Minor
• Quality Impact fishy odor to flour

3
Discovery in the U.S.

• Arizona March 1996 in durum seed
• Traced to fields in AZ, NM, TX, CA
• Quarantines imposed
• September 1997, San Saba County, TX in grain
• May 2001 4 counties in north Texas

4
(No Transcript)
5
(No Transcript)
6
U.S. Domestic Measures

• Quarantine regulations have evolved over time
• Regulated areas reduced by testing
• Compensation measures
• National survey started in 1996
• Spores vs. bunted kernels
• Overarching export objective export
  certification requirements

7
U.S. Export Maintanence

• Initially, 37 countries with known Kb
  requirements, including Mexico and Canada
• 17 MMT of exports affected
• Requirement list grew to 48 countries
• Bilateral negotiations commenced within days
• Not known to occur Additional Declaration
• By mid-April, Certification resolved on 98 of
  trade

8
2 HRW Ordinary FOB Gulf
9
Top 25 Importers Importers of U.S. Wheat 3 Year
Average (1998/99-2000/02)
Rank Importer Quantity(000MT) (Wheat Equiv.) Rank Importer Quantity(000MT) (Wheat Equiv.)
1. Egypt 4,322 14. Yemen 497
2. Japan 3,101 15. Russian Federation 495
3. Philippines 1,888 16. Peru 494
4. Mexico 1,822 17. Sri Lanka 466
5. Korea South 1,552 18. Pakistan 433
6. EU 1,297 19. Bangladesh 407
7. Nigeria 1,271 20. Jordan 384
8. Taiwan 958 21. Morocco 330
9. Israel 754 22. Thailand 313
10. Colombia 643 23. Ethiopia 298
11. Indonesia 575 24. Dominican Republic 271
12. Venezuela 556 25. Canadian Trans. 241
13. Algeria 515
10
Kb in Mexico

• 1983 U.S. prohibited Mexican imports due to Kb
• Early 1990s Mexico domestic quarantine
• Mexico began surveys
• 1998 U.S. recognized Mexicali Valley as free

11
Mexicos Actions

• March 20, 1996 closed border to U.S. wheat
• Certification negotiated (testing and fumigation)
• Current A.D. Wheat grain in this shipment did
  not originate from Arizona, California, New
  Mexico and the regulated counties in Texas.

12
Measures Regarding Canada

• Two issues, Imports and Transit
• Initially, Imports prohibited for the 4 states,
  lab test negative for all others
• Seaway transits - non-stops OK
• Seaway transshipments - no durum initially other
  wheat tested
• Requirement eased since 1996, but 4 states still
  banned
• Area freedom certification for other states

13
What We Have Learned About the Science of Kb

• Research on Kb limited prior to 1996
• More known today, but still preliminary
• Seed borne, mainly
• Infection at flowering
• Needs cool humid weather at heading
• Spore survival in soil B 5 years?
• Production loss lt 1, typically
• APS position B insignificant pest

14
Latest Developments

• After 4 year absence, discovered in North Texas
  in 2001
• Unlike 1996 no concern expressed by other
  countries, except one
• Strategic reassessment prompted
• Changed objectives?
• From containment and eradication to deregulation
  (domestic and international)

15
Latest Developments, Cont

• Development of Kb Strategic Plan underway
• Focus Trade Management
• Compensation
• Pest Risk Assessment
• Best Management Practices
• Research
• Economic impacts

16
What are the Trade Policy Lessons?

• No substitute for good science
• Openness and transparency pay off
• Good lines of communication B technical and
  policy - are vital
• Changing the status of Kb will be long and
  difficult
• North American cooperation will be valuable