The EU-US Beef Dispute may Bring on new Tariffs
Potential for Retaliatory Tariffs on some EU products
The EU-US Beef Dispute may Bring on new Tariffs.
The EU-US Beef dispute dates back to the early 1980s, when the EU adopted restrictions on importing beef from livestock that had been administered with hormones.
According to everycrsreport.com, “In 1989, the EU fully implemented its ban on imports of meat and meat products from animals treated with growth promotants. Initially the ban covered six growth promotants that are approved for use and administered in the United States. The EU amended its ban in 2003, permanently banning one hormone—estradiol-17—while provisionally banning the use of the five other hormones.”
As part of the dispute, the U.S. retaliated with higher tariffs on select food products from select countries in the EU, and thus the dispute has continued with its back-and-forth cycle for the past few decades. Then, the WTO ruled in favor of the US in 1998. The following year, a list of European products became subject to 100% retaliatory tariffs, which ended with a memo of understanding in 2011 that the EU would phase in increases in market access for the US beef industry… which actually has not worked out for the US beef industry.
The United States Trade Representative was planning to address the issue in the T-TIP negotiations, which were continuing through Obama’s Administration, which at this point have been placed on the back burner. The USTR has been silent on their approach since the new administration.
According to the NCBFAA,
“Although the review was initiated by the Obama Administration, Europeans are nervous about the outcome, given the Trump Administration’s tough talk on trade. More than 90 products are being considered for retaliatory tariffs in the Federal Register notice published by the Obama Administration. Most products are food-related, though the list also includes cut flowers, rayon fiber and motor scooters, among other non-food products. The USTR’s public comment period, which ended January 31, attracted over 11,000 comments. The original USTR notice and the list of potential products can be found here.”