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Russia            | New Agreement Announced Expanding Russian TRQs...

Published: Sep 30, 2003

Russia           

New Agreement Announced Expanding Russian TRQs

A ground-breaking agreement on meat trade in advance of Russia’s entry into the World Trade Organization (WTO) was announced today (Sept 29) by U.S. President George Bush and Russian President Vladimir Putin. Tariff rate quotas (TRQ) established earlier this year by Russia will be significantly expanded, both beef and pork variety meat products will not be bound by the TRQs, and high-quality “Hilton” products will also not count toward the TRQ tonnage.

“We are encouraged by this agreement,” commented USMEF President & Chief Executive Officer Philip Seng in a news release jointly published with the National Cattlemen's Beef Association (NCBA) and the American Meat Institute (AMI). “It provides the working framework with which to develop the practices and protocol needed for a long-term relationship.”

Seng added that the “Hilton” exemption is of particular importance since the market for U.S. high-quality beef is certain to grow now that it is untrammeled by the quota system.

USMEF currently has offices in both Moscow and St. Petersburg working with U.S. exporters and the Russian trade.

This agreement sets the stage for Russia to become a full and active member in the WTO. USMEF, NCBA and AMI agree that integrating Russia into a rules-based global trading environment will be key to advancing this trading relationship.

European Union                                                                         

EU Court Won’t Hear Hormone Ban Damage Case

The European Court of Justice threw out of court on technical grounds a French company’s damage claim related to the European Union’s long-standing embargo against hormone-treated beef. The court judges refused (Sept. 29) to consider the case because the alleged damages to the French beef importer Biret International occurred before the 1998 WTO ruling that the EU’s beef ban broke international court rules. Biret International went bankrupt in 1995. A ruling in the case would have clarified whether individuals can sue the EU under European law for not living up to WTO decisions.

In an unusual move, the court decided not to follow a recommendation by its advocate general, Siegbert Alber, who had recommended that Biret be allowed to seek damages because the ban continued after the WTO’s 1999 deadline to lift it. The court decided Tuesday that the EU cannot be held liable because the company didn’t suffer damages after the WTO’s final deadline in 1999. As a result, the court didn’t consider whether WTO law could be directly applied in the EU.

The European Commission is expected to decide tomorrow (Oct. 1) to continue with the ban, still arguing that the beef is a potential danger to public health despite the WTO ruling against it.

After losing the WTO appeal, the E.U. Commission proposed legislation in 2001 to bring its beef ban into line with global trade rules. Following two years of debate, European governments and the E.U. Parliament passed legislation amending its embargo on beef produced with growth promotants in July 2003. The E.U. has a permanent ban on one natural growth-promoting hormone, 17B-oestradiol, and a temporary ban on five others, progesterone and testosterone; and three synthetic hormones, zeronol, trenbolone acetate and melengestrol acetate.

Russia           

New Agreement Announced Expanding Russian TRQs

A ground-breaking agreement on meat trade in advance of Russia’s entry into the World Trade Organization (WTO) was announced today (Sept 29) by U.S. President George Bush and Russian President Vladimir Putin. Tariff rate quotas (TRQ) established earlier this year by Russia will be significantly expanded, both beef and pork variety meat products will not be bound by the TRQs, and high-quality “Hilton” products will also not count toward the TRQ tonnage.

“We are encouraged by this agreement,” commented USMEF President & Chief Executive Officer Philip Seng in a news release jointly published with the National Cattlemen's Beef Association (NCBA) and the American Meat Institute (AMI). “It provides the working framework with which to develop the practices and protocol needed for a long-term relationship.”

Seng added that the “Hilton” exemption is of particular importance since the market for U.S. high-quality beef is certain to grow now that it is untrammeled by the quota system.

USMEF currently has offices in both Moscow and St. Petersburg working with U.S. exporters and the Russian trade.

This agreement sets the stage for Russia to become a full and active member in the WTO. USMEF, NCBA and AMI agree that integrating Russia into a rules-based global trading environment will be key to advancing this trading relationship.

European Union                                                                         

EU Court Won’t Hear Hormone Ban Damage Case

The European Court of Justice threw out of court on technical grounds a French company’s damage claim related to the European Union’s long-standing embargo against hormone-treated beef. The court judges refused (Sept. 29) to consider the case because the alleged damages to the French beef importer Biret International occurred before the 1998 WTO ruling that the EU’s beef ban broke international court rules. Biret International went bankrupt in 1995. A ruling in the case would have clarified whether individuals can sue the EU under European law for not living up to WTO decisions.

In an unusual move, the court decided not to follow a recommendation by its advocate general, Siegbert Alber, who had recommended that Biret be allowed to seek damages because the ban continued after the WTO’s 1999 deadline to lift it. The court decided Tuesday that the EU cannot be held liable because the company didn’t suffer damages after the WTO’s final deadline in 1999. As a result, the court didn’t consider whether WTO law could be directly applied in the EU.

The European Commission is expected to decide tomorrow (Oct. 1) to continue with the ban, still arguing that the beef is a potential danger to public health despite the WTO ruling against it.

After losing the WTO appeal, the E.U. Commission proposed legislation in 2001 to bring its beef ban into line with global trade rules. Following two years of debate, European governments and the E.U. Parliament passed legislation amending its embargo on beef produced with growth promotants in July 2003. The E.U. has a permanent ban on one natural growth-promoting hormone, 17B-oestradiol, and a temporary ban on five others, progesterone and testosterone; and three synthetic hormones, zeronol, trenbolone acetate and melengestrol acetate.