The United States and Canada have reached an agreement this month to accept one another’s zoning in highly contagious foreign animal disease outbreaks. Gerry Ritz, the Agriculture Minister in Canada, described the pact as beneficial to trade while upholding safety.

Live animal, meat and by-product trade brings “billions of dollars each year” to Canada, according to Ritz. Much of that revenue comes from commerce with the U.S., where meat consumption is high.

When a disease outbreak occurs among livestock and animals, a zone is established for disease control and eradication. However, the outbreak can cause millions of dollars in collateral damage due to blanket restrictions that ignore the limited containment zone in the affected country. In effect, the foreign containment response can be overcautious and overreaching, restricting trade even from areas that are not affected.

A Regulatory Cooperation Council (RCC) was created in 2011 to help bring these regulations between the U.S. and Canada into better alignment. It is hoped that Canada can more effectively leverage its position as a major trade partner for the U.S. through coordination of both nations’ policies.

Although disease such as foot-and-mouth disease, swine flu or bovine spongiform encephalopathy (mad cow disease) are rare in North America, they can be devastating on the food industry when they occur. A pact between the two nations will help to limit economic loss from such events and unnecessarily broad restrictions, while keeping the safety measures of each nation intact.