Threat of Bioterrorism: exporters face hassles as U.S. congress targets food safety.

With news of war in Iraq and fears of terrorism at home flooding airwaves and dominating coffee shop chat, security officials face the daunting task of identifying a myriad of potential manmade disasters that could hit North America.

Governments and multinational corporations are realizing that bioterrorism isn't just the stuff of science fiction novels, and recent safety efforts have focused on protecting food and water supplies. Spurred by the Sept. 11 attacks, new trade regulations--under the Bioterrorism Act of 2002--are being imposed by the U.S. Congress. These regulations put Mexican exporters m a tough spot.

With war ongoing with Iraq, the U.S. government raised its terror alert to Orange, the second-highest level of alert. Intelligence sources in the past year have reported that some of the United States' fiercest enemies may possess chemical agents that could be used to inflict substantial damage.

"There have been indications in A1 Qaeda and in Afghanistan that showed that terrorists had been planning some kind of attack on the water sources and the food supplies," said Diane Page, science and health officer for the U.S. Embassy in Mexico.

But while it is clear that the risk of terror is high, not even experts in the field can pinpoint the most likely soft spots in the food and water supply. Peter Katona, associate professor of infectious diseases at University of California-Los Angeles and Los Angeles County Bioterrorism Task Force member, said if he knew where terrorists were most likely to strike, "I would be arrested."

PROTECTING THE SUPPLY CHAIN

The U.S. Department of Defense has said that of all potential terror threats, the nation should be most worried about biological attacks on the nation's food supply.

Shortly after the attacks on the World Trade Center and the Pentagon, several fatal anthrax cases alerted world governments to the danger of bioterrorism. The new regulations are designed to improve the United States' ability to prepare for, trace and respond to bioterror and other public health emergencies that could threaten agricultural products and public safety.

According to Page, the new laws, which will take effect in December, will make it easier to trace food products to their origins. This could be done not only in response to an attack, but also to track down any natural sources of tarnished foodstuffs.

"The intention of the Bioterrorism Act is to provide information," Page said. "It wasn't made to prevent bioterrorism. That would be nearly impossible to do."

With Mexico's agricultural exports to the United States totaling about US$5.3 billion, tracking and collecting information about all exports and their products is no small chore.

Tommy G. Thompson, the U.S. Secretary of Health and Human Services, said the government has a mammoth task in keeping food safe for consumption.

"Securing our food supply against terrorist threats is one of our most important public health priorities, especially at a time of heightened alert," Thompson said in a Food and Drug Administration press release. "The FDA is responsible for 80% of what we eat. Americans depend on the FDA to keep food safe and secure, and we will keep doing all we can to fulfill this critical mission."

SEEMINGLY HERCULEAN TASK

The toughest task for the FDA and U.S. embassies worldwide is to get the word out to exporters, some of whom operate in remote rural regions, including parts of Mexico. Officials fear that products will arrive at the border, and the exporter will not have even heard of the new regulations.

The new law requires all food transporters to submit a plan of arrival before they reach the border. The "prior notice," which must be submitted via Internet, must include the desired port-of-entry, an itemized list of products and their origin, as well as an estimated time of arrival. The food items are then required to arrive within three hours of the submitted time. If the transporter fails to fulfill these or any of a number of other obligations, the goods can be seized and stored in FDA-approved facilities at the importer's or exporter's expense.

In addition, all agencies and companies that export to the United States must register with the FDA and with U.S. Customs. When the final regulations are announced Oct. 12, the exporters will have exactly two months to prepare and submit their registrations before the regulations are implemented.

The Bioterrorism Act has raised many concerns among Mexican exporters. Many longtime trade partners have asked to be made exempt from the tough new regulations. The North American Free Trade Agreement contains a "favored nation" clause, which says that U.S., Canadian and Mexican companies should be treated as if they were members of the same country.

However, some officials think the "favored nation" argument is weak.

"Foreign exporters already have to give prior notice to U.S. Customs," said Bruce Zanin, who directs the U.S. Embassy's Agricultural Trade Office. "It makes me wonder if it is a valid argument."

BACKLOG AT THE BORDER?

The FDA has accepted arguments, complaints and suggestions from trade agencies, exporters, producers and merchants from the United States, Mexico and dozens of other countries. All comments are currently being reviewed by the FDA.

The agency is also preparing for technological and other glitches.

"What happens if the Internet goes down? Or there is a mistake in the paperwork? Or what happens if a truck breaks down?" Zanin said.

The main concern among exporters is that the new regulations will slow or stop their products from crossing the border, according to Zanin. If the shipment doesn't meet the extensive requirements, it could mean big dollars down the drain for U.S. importers and Mexican exporters, as their products "could be held at the border at no fault of the exporter or importer," he said.

Another problem for heavy exporters will be the cost of filing the new paperwork. The new regulations will bring additional fees, and many exporters have said they'll need to hire additional staff to complete the required forms, Zanin said.

Nevertheless, the Bioterrorism Act of 2002 is not expected to deliver a knockout punch to Mexican exporters. They are plagued with larger concerns right now, namely the abolition of tariffs early this year on many agricultural products. Mexican farmers in particular have passionately protested the NAFTA provisions, saying their small farms cannot compete with the heavily subsidized U.S. agriculture industry.

Despite the new regulations and the potential problems exporters face in a time of terror threats and war, worldwide trade is expected to continue its rise.

"It's possible that exports will dip down initially in December when the regulations are implemented," said Zanin. "But we think that the upward trend will continue."

Mark Gudmastad is an intern at BUSINESS MEXICO.