WASHINGTON, March 27 (Reuters) - Mexico will ease import restrictions for cattle imports from the United States by allowing breeding animals born after Jan. 1, 1999, the U.S. Agriculture Department said on Thursday.

USDA said the new guidelines, which go into effect on Friday, were established following meetings between the United States, Canada and Mexico this week, and bring the trading partners in line with international guidelines.

Currently, Mexico allows imports of dairy cattle from the United States that are 24 months of age or younger, according to USDA.

The new rule opens it up to breeding cattle born after Jan. 1, 1999, as long as certain protocols are followed, such as if the animals are accompanied by permits, can be identified through a device such as a tattoo and have been inspected and appear healthy.

The agreement also allows Canada to ship breeding cattle to Mexico born after Jan. 1, 1999, but Canadian exporters will need to obtain import permits from United States and Mexico, as well as a health certificate from the Canadian Food Inspection Agency. Shipments will be inspected by U.S. and Mexican officials.

"We mutually agreed on the importance of normalizing beef and cattle trade in North America consistent with the guidelines established by the World Organization for Animal Health," said U.S. Agriculture Secretary Ed Schafer.

U.S. officials had hoped a decision last May by the World Organization for Animal Health (OIE), which gave the United States a "controlled risk" status for beef safety, would boost beef exports significantly, but there has been little change.

"This is a big win for U.S. cattle producers - and in particular - those in the seed stock community," says Gregg Doud, chief economist for the National Cattlemen's Beef Association (NCBA). "Mexico is currently working to expand their herds, so this decision comes at a critical time."

Still, NCBA said while this was a step forward, Mexico continues to ban the import of beef and beef products from animals over 30 months of age.

Beef shipments from the United States were virtually halted after it found its first case of mad cow disease in December 2003. That year, Mexico was the second biggest customer of U.S. beef with shipments totaling $615 million.

Global U.S. beef sales have been edging higher, but not quickly enough for the administration or for the beef industry, which complains of age restrictions and inflexible import rules.

The Agriculture Department has estimated U.S. beef exports in 2008 will rise to 1.54 billion lbs -- still far below the 2.5 billion lbs recorded just five years ago.