Expanding EU Beef Trade Will Add Value, Opportunity for U.S. Industry
Expanding EU Beef Trade Will Add Value, Opportunity for U.S. Industry
United States Trade Representative Ron Kirk and European Union (EU) Trade Commissioner Catherine Ashton announced today that they have agreed in principle to a negotiated compromise in the long-running dispute over hormone-treated beef.
While the provisional agreement does not remove or alter the EU ban on hormone-treated beef, it will provide additional duty-free access to the EU market for high-quality U.S. beef produced from cattle not treated with growth-promoting hormones. This new, duty-free high-quality beef quota will be 20,000 metric tons per year in the first three years, then increase to 45,000 metric tons beginning in the fourth year. The duty-free quota will be in addition to the existing high-quality beef quota of 11,500 metric tons per year, which is subject to a 20 percent duty.
“USMEF is encouraged by the news that the United States and the European Union have reached a provisional agreement that will open new export opportunities in Europe for U.S. meat producers and cattlemen,” said USMEF President and CEO Philip Seng.
Under the agreement, the United States will maintain existing sanctions on EU products during the initial three-year period, rather than impose a new round of sanctions under previously announced carousel retaliation measures. In the fourth year, all sanctions will be eliminated. The two sides also agreed to refrain from further litigation at the World Trade Organization (WTO) regarding the EU’s hormone ban on for at least 18 months.
Seng explained that while carousel retaliation measures served a critical role in advancing the negotiations, an actual increase in trade is much more beneficial to U.S. interests.
“Although this agreement does not attempt to resolve the long-standing hormone dispute with the E.U., it opens the door for increased two-way trade between the United States and Europe,” he said. “We appreciate the personal involvement of Ambassador Kirk and Commissioner Ashton in leading these negotiations to a positive outcome. Thanks to their leadership and the dedication and creativity of the negotiators on both sides, an important step has been taken toward establishing an improved trading relationship as we move forward.”
The provisional agreement announced today will not be finalized until it is approved by the EU member states. Assuming such approval, the final agreement will be implemented this summer.
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The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.
Expanding EU Beef Trade Will Add Value, Opportunity for U.S. Industry
United States Trade Representative Ron Kirk and European Union (EU) Trade Commissioner Catherine Ashton announced today that they have agreed in principle to a negotiated compromise in the long-running dispute over hormone-treated beef.
While the provisional agreement does not remove or alter the EU ban on hormone-treated beef, it will provide additional duty-free access to the EU market for high-quality U.S. beef produced from cattle not treated with growth-promoting hormones. This new, duty-free high-quality beef quota will be 20,000 metric tons per year in the first three years, then increase to 45,000 metric tons beginning in the fourth year. The duty-free quota will be in addition to the existing high-quality beef quota of 11,500 metric tons per year, which is subject to a 20 percent duty.
“USMEF is encouraged by the news that the United States and the European Union have reached a provisional agreement that will open new export opportunities in Europe for U.S. meat producers and cattlemen,” said USMEF President and CEO Philip Seng.
Under the agreement, the United States will maintain existing sanctions on EU products during the initial three-year period, rather than impose a new round of sanctions under previously announced carousel retaliation measures. In the fourth year, all sanctions will be eliminated. The two sides also agreed to refrain from further litigation at the World Trade Organization (WTO) regarding the EU’s hormone ban on for at least 18 months.
Seng explained that while carousel retaliation measures served a critical role in advancing the negotiations, an actual increase in trade is much more beneficial to U.S. interests.
“Although this agreement does not attempt to resolve the long-standing hormone dispute with the E.U., it opens the door for increased two-way trade between the United States and Europe,” he said. “We appreciate the personal involvement of Ambassador Kirk and Commissioner Ashton in leading these negotiations to a positive outcome. Thanks to their leadership and the dedication and creativity of the negotiators on both sides, an important step has been taken toward establishing an improved trading relationship as we move forward.”
The provisional agreement announced today will not be finalized until it is approved by the EU member states. Assuming such approval, the final agreement will be implemented this summer.
# # #
The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.