September 26, 2000

The proposed Trade Injury Compensation Act (TICA) could be another useful tool in the beef industry's quest to move the European Union to comply with international trade rules, the National Cattlemen's Beef Association says. The measure would allow funds collected from tariffs on more than $116 million in EU products to go directly to the cattle industry.

The industry, in turn, would use some of the funds to educate EU consumers about the safety of U.S. beef, U.S. production practices and technologies, and the Food and Drug Administration approval process.

"The beef industry's end goal is not retaliation against the European Union," said Dana Hauck, a cattle producer from Delphos, KS, and chairman of the beef industry's International Markets Committee. Hauck submitted written testimony Monday to House members participating in a joint hearing of two Senate Agriculture subcommittees. "We'd like to see the day when cattle producers have access to the EU market," Hauck added.

TICA was introduced in the Senate earlier this year. Its goal is to compensate industries hurt by countries that fail to abide by international trade rules. TICA would mandate a national research and promotion board of producers, nominated by state organizations and appointed by the agriculture secretary, to administer programs funded by TICA. Besides educating EU consumers, other ideas for TICA include international and domestic education and research programs.

"Carousel retaliation is important and could eventually move the EU to comply with international trade rules," Hauck said. "In the meantime, cattle producers aren't benefiting. TICA isn't perfect, but it is designed to be as equitable to the U.S. beef industry as possible. Why not give the funds collected from trade disputes back to the industries that are harmed?"

However, Clinton administration officials expressed concern the plan to use U.S. retaliatory duties against European Union products to fund market promotion activities for American cattle producers, according to a REUTERS report.

In a written statement, the U.S. Trade Representative's office said use of the money for promotion and advertising would give U.S. cattle producers a financial stake in maintaining the $116.8 million in retaliation.