July 14, 1999

Three major agricultural organizations want U.S. retaliation against European imports to concentrate on a "carousel approach." Under a carousel concept, targeted EU products would be rotated periodically to ensure that "specific concessions are suspended for all EU member countries," they say. The retaliation is in response to the EU's unwillingness to allow beef imports from animals treated with growth hormones.

The American Meat Institute, American Farm Bureau Federation and National Cattlemen's Beef Association have asked the U.S. trade representative to adopt the approach for retaliation. A list of targeted EU products would be rotated among various EU member countries in an effort to spread the pain around. USTR is expected to name products that will be affected within the next few days.

"We suggest that USTR select two to five of the largest countries in the EU to be the `first up' for retaliation. If the products designated for retaliation are spread to a broader sector, the impact will likely be diluted and ineffective," the groups say.

At a news conference Tuesday, sponsored by the three groups, Peter Scher, USTR special negotiator for agriculture, was asked if USTR favored the carousel. He said USTR has a right to change the list, but it's premature to talk about what changes would be appropriate. Scher's appearance at the news conference was something of a surprise. "We had hoped he would drop by," said one official involved in the event.

The United States has the right to retaliate against EU food product imports totaling about $117 million a year by imposing high duties on the products.