July 13, 1999

It probably was a compromise somewhere between what the United States and the European Union claimed was fair, so the World Trade Organization's decision that the United States lost $116.8 million in trade because of the EU's beef import ban should satisfy no one. It certainly doesn't satisfy U.S. interests, but they may be stuck with it.

The WTO said that the $116.8 million represents the amount of trade lost to the United States as a result of the EU ban on beef from cattle treated with growth hormones. That means since the United States lost $116.8 million in trade, it has the right to impose prohibitive duties on EU imports equal to that amount.

While we believe the (WTO) arbitrator significantly underestimated the actual trade damage to U.S. beef and beef variety meat exports, we accept the arbitrator's findings, said Agriculture Secretary Dan Glickman. We need (now) to move quickly to exercise our WTO rights. We are preparing to withdraw access for EU products to the United States equal to the full $116.8 million value.

The National Cattlemen's Beef Association is disappointed at a decision that values America's loss from 10 years of an illegal EU beef ban at only $116.8 million. The figure is more representative of the loss to American cattle producers when the ban was first implemented in 1989 and does not reflect the tremendous growth in export revenues that cattle producers have experienced worldwide during the past decade. NCBA placed the value closer to $500 million.

It will make a difference how the United States decides to impose the prohibitive duties. Len Condon, former U.S. trade representative office official and now vice president of international trade at the American Meat Institute, believes the worst thing we could do is take this limited amount and spread it across all (EU) countries. That would so dilute the effect that they'd hardly feel it.

The thing to do, he says, is to target a subset of the largest five countries. Put the word out you're going to move (the retaliation) around, and they're all going to get hit. Make it a moving retaliation, every six months or a year. They're all going to pay for it.

Condon will join G. Chandler Keys, vice president of public policy, NCBA, and Richard Kjerstad, president, South Dakota Farm Bureau at 9 a.m. today for a news conference on retaliation against the ban. The news conference will be held in the Zenger Room at the National Press Club.