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

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. RankImporterQuantity(‘000MT) (Wheat Equiv.) RankImporterQuantity(‘000MT) (Wheat Equiv.) 1.Egypt4,32214.Yemen497 2.Japan3,10115.Russian Federation495 3.Philippines1,88816.Peru494 4.Mexico1,82217.Sri Lanka466 5.Korea South1,55218.Pakistan433 6.EU1,29719.Bangladesh407 7.Nigeria1,27120.Jordan384 8.Taiwan95821.Morocco330 9.Israel75422.Thailand313 10.Colombia64323.Ethiopia298 11.Indonesia57524.Dominican Republic271 12.Venezuela55625.Canadian Trans.241 13.Algeria515 Top 25 Importers Importers of U.S. Wheat 3 Year Average (1998/99-2000/02)

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. Mexico’s 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 < 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, Con’t 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