Cattlemen's Capitol Concerns: USTR seeks comments on possible changes to product list in EU-beef hormones dispute

TSCRA News Update, Nov. 7, 2008

USTR seeks comments on possible changes to product list in EU-beef hormones dispute

On Oct. 31 United States Trade Representative (USTR) Susan Schwab announced that USTR would seek public comments on modifying the list of European products subject to increased tariffs in connection with World Trade Organization (WTO) dispute settlement rulings in the European Union - Beef Hormones dispute.

On Oct. 16 the WTO Appellate Body confirmed that the U.S has the right to continue imposing retaliatory sanctions until the dispute over the European Union's (EU) ban on hormone-treated beef. The ban, which has been in place for more than 20 years, is scientifically unjustified and fails to satisfy the requirements of the WTO agreement on Sanitary and Phytosanitary Measures.

The EU claims that amendments made to the ban in 2003 bring them into compliance with WTO trade requirements. However, the ban continues to prohibit beef treated with hormones, pending the availability of further scientific evidence.

Numerous U.S. and international scientific studies have shown that the U.S.cattle industry produces safe and wholesome beef. The growth promotants used in cattle production are vigorously tested by the Food and Drug Administration for safety - both for the animals' well-being and for the trace amounts that may be in meat consumed by humans. The hormones, many of which occur naturally in other foods, have all been proven safe.

Growth-promoting hormones help stimulate growth by increasing the efficiency in which feed is converted to muscle. Certain products, when administered to animals in very small amounts, supplement cattle's natural hormone production and improve growth rates by allowing the animal to produce more muscle and less fat. This helps the industry produce leaner beef for consumers.

The EU is an important market for U.S. beef products, having rapidly emerged as one of the world's largest net beef importing countries in recent years after being a net exporter earlier this decade. Despite this unscientific trade restriction, the EU will be a key market in 2008 with U.S. beef exports projected to exceed $100 million.

NCBA's Chief Economist Gregg Doud explained how modifying the European product list subject to retaliation is beneficial, saying, "Increasing tariffs on different products, or 'carouseling,' doesn't make it more costly for the E.U. to continue this unscientific ban, but it could potentially impact a greater number of businesses and industries, which in turn could help increase internal pressure in Europe to end the ban. NCBA appreciates USTR's decision to open this for public comment."