USTR to Hold Hearing on EU Import Tariffs over Hormone-Treated Beef

Farm Journal logo

Duties would primarily target agricultural products


NOTE: This column is copyrighted material; therefore reproduction or retransmission is prohibited under U.S. copyright laws.


A public hearing on imposing potential 100 percent import tariffs on some 90 European products -- particularly targeting agricultural products from France, Germany and Italy -- will be held February 15 in Washington, DC by the Office of the U.S. Trade Representative (USTR).

USTR published the list of potential products to be targeted in a December 28, 2016, Federal Register notice (link) which also announced the February 15 hearing. While most of the 90-odd products targeted by the US retaliatory list are meats, it also includes goods such as for motorbikes, chocolate, mustard, paprika and chestnuts.

The tariff proposal stems from a dispute that has been simmering for nearly 30 years over the European Union’s (EU) refusal to accept imports of US beef treated with hormones. US livestock producer interests are pushing the Trump administration to hit the EU hard. The bloc has a €136 billion ($144.6 billion) surplus with the US, making it particularly vulnerable to trade sanctions.

The European Commission (EC) said it was closely following “the US review process to reinstate trade sanctions.” USTR has not commented on the issue, in part because Trump’s nominee for USTR, Robert Lighthizer, has not yet been confirmed by the Senate.

The beef dispute dates to the 1980s and in 1996, the US filed a complaint at the World Trade Organization (WTO) for the EU ban on imports of hormone-treated beef. After the EU continued to enforce its ban, the WTO allowed the US to impose punitive tariffs equal to the damage suffered because of the hormone ban.

The retaliatory tariffs had a significant impact, causing the value of EU imports affected by the duties to drop from $130 million in 1997-98 to less than $15 million in 2008, per a Congressional Research Service (CRS) report (link). In 2009, under President Barack Obama, both sides reached an agreement for ending the trade sanctions in return for allowing the US to export up to 50,000 tons of hormone-free beef per year to Europe.

"That was at a moment when the Americans were truly open to negotiate at eye level," said Godelieve Quisthoudt-Rowohl from the European People’s Party, who was the European Parliament’s rapporteur on the deal. In 2012, the agreement passed the Parliament, just a year before the EU and U.S. started talks on the Transatlantic Trade and Investment Partnership (TTIP) pact. Negotiations on TTIP are ongoing, but there is uncertainty about their future given the stance President Donald Trump has taken on trade issues.

The dispute over beef reignited in part because US farmers argue that the 2009 deal was not fair to them. They say countries such as Australia and Uruguay, which can produce hormone-free beef more cheaply, have moved in to fill the 50,000-tonne quota originally intended for the United States.

Retaliation is a “last resort” but is “the only way to secure fair compensation for the losses the US meat industry has incurred over the years because of the EU’s hormone ban," North American Meat Institute President and CEO Barry Carpenter said in December.

The U.S.' retaliatory list is meant as leverage on the EU to take action, according to Jean-Luc Mériaux, secretary-general of the European Livestock and Meat Trading Union. "It’s more expensive for US farmers to comply with the EU’s requirements than for beef producers from other countries using the quota," he said. "There’s an economic problem … The message to the Commission is: ‘Find a way to fix this.’"


NOTE: This column is copyrighted material; therefore reproduction or retransmission is prohibited under U.S. copyright laws.

 

 

Latest News

Biden Administration Restores Wildlife Protections
Biden Administration Restores Wildlife Protections

The U.S. Fish and Wildlife Service plans to reinstate rules protecting endangered plants and animals, action that would reverse changes made during the Trump Administration that weakened the Endangered Species Act.

Across Breed EPD Adjustment Factors
Across Breed EPD Adjustment Factors

EPDs from multiple breeds can be compared by adding/subtracting the appropriate adjustment factors to the EPDs resulting from the most recent genetic evaluations for each of 18 breeds.

APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies
APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies

The livestock industry continues to grapple with the first confirmed cases of HPAI in cattle, while federal and state agencies continue to assure consumers there's no concern about the safety of the U.S. milk supply.

Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps
Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps

U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in ag. The AgCareers.com U.S. Skills Survey offers insights, data and trends to address skill development.

USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims
USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims

Conservation Reserve Program (CRP) participants can donate emergency grazing authority to ranchers in Nebraska, Oklahoma and Texas impacted by recent wildfires.

New Guide Helps Producers Maximize Values of Cull Cows
New Guide Helps Producers Maximize Values of Cull Cows

A new resource developed by the National Cattlemen’s Beef Association and CattleFax helps cattle producers maximize profitability from their culling decisions.