U.S. Wants $202 Million for EU Retaliation

May 17, 1999

The United States will tell the World Trade Organization that $202 million in suspended concessions to the European Union will be imposed as a result of the EU's failure to lift its ban on imported meat from livestock treated with growth hormones. The amount is based on a projection that U.S. beef exports to Europe would reach about $202 million a year without the ban.

It's an action that is "100% consistent with our WTO rights," said U.S. Trade Representative Charlene Barshefsky. "The EU has again refused to comply with a WTO ruling against its illegal trade policies, just as it did when it lost WTO cases concerning its discriminatory banana regime. In sharp contrast, the United States and every other WTO member faced with a similar situation has met the measure of its international commitments. The EU should meet its WTO obligations, including those resulting from adverse rulings against it. To do anything less is to jeopardize the credibility and integrity of the WTO."

Agriculture Secretary Dan Glickman said, "Unfortunately the EU's unwillingness to meet its international obligations leaves the U.S. with no choice (but to retaliate). Starting today (Friday, May 14) we are moving ahead with steps necessary for WTO authorization to suspend trade concessions. This...will allow us to impose 100% tariffs on specific EU agriculture and consumer products as early as mid-June."

The National Cattlemen's Beef Association cautiously disputed the $200 million as representative of what the cattle industry could export to EU nations but still supported the figure "in order to expedite the WTO review that now will proceed." The only real resolution to the dispute, said NCBA "is access to the EU market for U.S. cattle producers. Access is all that is required."