Radical EU Solution to US Beef Hormone Dispute?

EU - Following the announcement that the US have postponed sanctions in the context of the EU ban on hormone treated beef, reports are now coming to light that the EU may offer double the current quota in a bid to end the dispute altogether.

18 March 2009

2 minute read

"The EU and U.S. are engaged in negotiations to find a way forward on this issue, and I am confident we will find a solution very soon," said EU trade Commissioner Catherine Ashton. She is currently scheduled to be in Washington DC for talks with the US Administration and key members of Congress.

Reuters news agency say that their sources have revealed the EU bloc is offering to double its quota from the current 11,500 metric tons, an amount the Unites States shares with Canada, in exchange for the elimination of about $116 million worth of U.S. sanctions against EU products. However, the plan reportedly does not include an end to the EU's ban on beef treated with hormones, reports Reuters.

Late last week, Washington decided to delay by 30 days the imposition of additional duties on EU products as negotiations continue.

The EU bought a total of 20,660 metric tons of U.S. beef in 2008 valued at $99.7 million, according to the U.S. Meat Export Federation. Currently, the EU imposes a reduced tariff of 20 per cent on the value of the first 11,500 metric tons of beef that the United States and Canada ship into Europe. For any amount of beef above that, they must pay a combined tariff of 12.8 percent duty and 3,000 euros (US$3,877) per tonne.