AUSTRALIA has scrapped its blanket ban on beef imports from "mad cow'' countries as a result of trade threats, the beef industry has revealed.

The industry's top peak body, the Red Meat Advisory Council, says the move was prompted by "recent indications of possible World Trade Organisation action''.

"Given scientific knowledge of the disease and the negligible risks of infection, overseas countries rightly believe we have been holding on to an unfair trade barrier, something Australia rejects from other countries,'' RMAC chairman Ian McIvor said.

The US, Japan, Canada and 22 EU countries have been shut out of Australia's beef market since 2001 because they've had outbreaks of bovine spongiform encephalopathy (BSE).

It is understood that one or more of these countries, which have been persistently calling for a change to Australia's policy, have made the WTO threat.

The Federal Government last week announced the blanket bans would be scrapped from March next year, on the basis of new scientific evidence on minimal disease risks and support from industry.

Liberal Senator Bill Heffernan has railed against the move which he said was trade-related and would harm Australia's "clean green'' image.

He will this week push for a Senate inquiry.

In a bid to reject public "misinformation'' on the decision, Mr McIvor said the industry had been consulted and all sections - producers to processors - backed the decision.

Continuing with the blanket bans could have had devastating consequences for Australia's beef industry in the event of a single case of BSE detected locally, he said.

"All beef could be removed from all domestic shelves at enormous expense, crippling the industry. Foreign markets could reciprocate by locking us out without scientific justification, and with two-thirds of our beef exported, this is a critical issue.''

Potential exporters to Australia would have their animal health and processing systems assessed for food safety, animal health, surveillance, feeding and slaughter practices, Mr McIvor said. "Industry will be closely monitoring this process.''

Australia's "clean green'' image was not under threat, with its international ``negligible risk'' status unaffected, he said. New Zealand had also changed its rules in a similar way three years ago and not suffered any problems on this front.

Nor would there be any risk to Australia's exports, with three main markets _ US, Japan and Korea _ already taking beef from BSE countries under strict rules, Mr McIvor said.