990713 AMI, Cattlemen Comment on EU Retaliation

Washington - The following is a statement by the American Meat Institute, the American Farm Bureau Federation, the National Cattlemen's Beef Association and the U.S. Meat Export Federation Regarding U.S. Retaliation Against Europe's Ban on U.S. Beef July 13, 1999:

As the major organizations representing producers and processors of U.S. beef, we are dismayed that the trade dispute over beef exports to Europe will result in U.S. retaliation against European imports. It is unfortunate that U.S. consumers will not have the opportunity to enjoy European products because of the EU's steadfast refusal to recognize the overwhelming scientific consensus that U.S. beef is safe.

We stand firm in support of U.S. retaliatory tariffs on European products. The World Trade Organization (WTO) has ruled time and again that the 10-year- old trade dispute over the European Union's (EU) ban on beef raised with growth promotants is illegal and violates international trading rules.

Yesterday, the WTO ruled that the value of the beef market lost to the dispute is $116.8 million -- the value of retaliatory tariffs that the U.S. will be authorized to impose on European products under the dispute settlement process. The Office of the U.S. Trade Representative is expected to name the products that will be affected within the next few days.

We have urged the U.S. Trade Representative (USTR) to adopt a carousel approach for retaliation wherein the list of targeted EU products is rotated periodically to ensure that specific concessions are suspended for all EU members countries. We suggest that USTR select two to five of the largest countries in the EU to be the “first up” for retaliation. If the products designated for retaliation is spread to a broader sector, the impact will likely be diluted and ineffective.

Fair trade is important for food producers and consumers around the world. There is no room for political agendas. WTO rules are designed to create a level playing field and promote fair international trade. These rules must be respected if we are to preserve a credible multilateral trading system. It is unacceptable for the world's largest trading bloc to essentially thumb its nose at WTO findings.

Retaliation is a necessary step to encourage EU compliance. The only real resolution to this issue is access to the EU market for U.S. beef producers. Access is all that is required. Then, EU consumers will have the opportunity to purchase U.S. beef if they so choose and no EU imports will be penalized.

Despite this latest action, we will continue our outreach to European consumers about the safety of U.S. beef and U.S. production practices.

This Article Compliments of...