WRAPUP 7-Flu-hit Mexico to resume business, pork row erupts

(For full coverage of the flu outbreak, click [nFLU])

* Mexico to resume normal business life on May 6

* Dispute over pork trade bans

* WHO urges caution, but uncertain over pandemic alert

* More than 1,000 cases in 21 countries (Recasts with Mexico to resume normal business)

By Alistair Bell and Daniel Trotta

MEXICO CITY, May 4 (Reuters) - Mexico will resume normal business activity this week after its swine flu emergency eased, but the global flu alert triggered a trade dispute on Monday over bans on Mexican, U.S. and Canadian pork.

International tensions triggered by the new H1N1 virus, which contains mostly swine components with bits of human and avian influenzas, emerged after about 20 nations banned imports of pork, pigs and other meat from the United States, Canada and Mexico, the three most flu-affected countries. [nN04402062]

Mexico, the epicenter of the new flu outbreak which has surfaced in 21 countries, declared it was winning the battle against the flu, which has killed 26 people in the Latin American oil producer nation.

Health Minister Jose Angel Cordova told reporters on Monday the government would lift the five-day shutdown it imposed on public and business activities on May 1 after the epidemic swept across the country.

"(We will) resume, as planned, activities in the public and private sector on May 6 with recommendations on matters of health and hygiene at the workplace," Cordova said.

Most of Mexico's schools will remain closed until May 11.

As infections of the new H1N1 flu strain continued to appear across the globe, the World Health Organization wavered over whether it might declare a full pandemic alert.

Canada threatened to take China to the World Trade Organization unless Beijing backed down from its ban on imports of pigs and pork from Alberta province, where a herd of pigs was found to have the H1N1 strain. [nOTW000343]

While the new H1N1 virus is not foodborne, fears it may spread through animal products have prompted restrictions on live pigs, pork, cattle, poultry, livestock, feed and animal semen from countries with infections. [nL471250]

U.S. hog futures fell on Monday and meat packing companies cut pork production this weekend amid the import bans and an apparent slide in retail orders due to the H1N1 flu, which has also caused exports from Canada to tumble.