U.S. Releases List for EU Retaliation
March 23, 1999

The U.S. government has released a preliminary list of European Union export products to the United States on which 100% tariffs could be applied if the EU continues to ban imports of beef from hormone-treated cattle.

Retaliation, however, depends on whether the EU continues the ban or lifts it and allows U.S. beef to enter EU markets.  A Reuters report from Brussels says EU foreign ministers want   to solve the dispute.  Ministers authorized the EU's executive commission to continue exploring possibilities for agreement based on compensation and labeling.

A World Trade Organization panel has ruled the EU ban violates international trade rules.

"It is a travesty that the EU has continued this illegal practice without penalty through most of the past three years while this case has been litigated," four U.S. farmer and processor groups said.  "To create necessary pressures to ensure compliance, WTO rules provide for penalties -- withdrawal of tariff concessions.  Given the cavalier attitude of the EU member
states on this issue, significant penalties are appropriate to create those pressures."

In announcing the list of products subject to retaliation, U.S. Trade Representative Charlene Barshefsky said prohibitive tariffs would be applied if the EU does not comply with the WTO panel ruling by May 13.  Under WTO procedures, it likely would take somewhat longer before the duties would actually kick in.  Increased duties of 100% ad valorem may be applied to
the articles on the list.

Included on the list, in addition to a variety of meat products were Roquefort cheeses, cut flowers, tomatoes, carrots, chestnuts, paprika, oats,  chewing gum mineral waters, yarn and motorcycles.