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Europe Daily Bulletin No. 9903
Contents Publication in full By article 15 / 32
GENERAL NEWS / (eu) eu/trade

Provisional EU-US agreement on hormone-treated beef

Brussels, 15/05/2009 (Agence Europe) - After the go-ahead given by member states at the 133 Committee meeting on 8 May, the EU, on Wednesday 13 May, signed the agreement reached with the United States of 6 May to resolve, at least temporarily, the long-standing dispute over hormone-treated beef. In Geneva on Wednesday, EU and US representatives at the WTO signed a memorandum of understanding (MoU) giving the agreement legal force for four years. The MoU signed provides for three phases to settle the transatlantic dispute. Phase 1 will last three years. The United States will maintain a reduced level of sanctions on EU products of $38 million instead of $116 million. The United States also agrees not to impose so-called Carousel sanctions, planned by the outgoing Bush administration in January. This legislation would have meant that existing sanctions would have rotated to new products every six months. These measures, which targeted certain products, including products such as mineral waters, Roquefort cheese, fruit juices and canned peaches, would have affected EU exports worth over $200 million to the United States. In return, the EU will open a tariff rate quota for imports of 20,000 tons of high quality beef at zero duty by 3 August. This beef will be in line with all EU import requirements, including that it must be hormone-free. The memorandum provides for the possibility to advance to Phase 2 in the fourth year. The United States would then suspend the remaining sanctions on EU products, while the EC would increase the size of the tariff rate quota for high quality beef to 45,000 tons. Scheduled to last one year, this phase will allow the two parties to negotiate on a definitive agreement. The memorandum also provides a roadmap for the WTO dispute on Beef Hormones (DS 350) pending a definitive solution that may be agreed under Phase 3. This would bring an end to the 20-year dispute on hormone-treated beef once all the legal arrangements had been agreed, including at the WTO. (E.H./transl.rt)

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