990736 U.S. Pork Industry Disappointed With EU Retaliation

Washington - The $30 million in planned retaliatory duties against pork imports from Denmark, Germany and other nations does not go far enough to punish the European Union, U.S. pork producers said.

Although the biggest chunk of the $116.8 million in tariffs is earmarked for EU hams, sausages and other pork products, the National Pork Producers Council said it was disappointed that the list did not include ribs.

“While the NPPC recognizes the inclusion of pork on USTR's retaliation list, it is not represented at the level or specificity necessary to significantly impact European Union trading practices,” the industry group said in a statement.

The stiff 100% duties against EU pork and a variety of gourmet foods are intended to punish Brussels for refusing to lift its ban on imports of American beef from cattle treated with growth hormones. The WTO earlier this month said Washington was free to impose retaliatory tariffs.

The tariffs are scheduled to begin on July 29.

Last year, the U.S. imported a total of about $700 mln in ribs, hams and other pork products, with the European Union supplying $245 of the shipments. Ribs made up more than one-third of the pork imports from the EU.

The majority of EU pork imports shipped to the U.S. are from Denmark.

U.S. pork producers, who have complained of non-tariff barriers limiting their sales to Europe, exported $36 million of meat to the EU last year.

The pork group had lobbied the Clinton Administration to impose at least half of the $116.8 million in retaliatory duties against EU pork products.

“USTR's list is not in the long term interests of American pork or beef producers,” the group said.

U.S. pork and cattle industry groups had expressed sharp differences of opinion in which agricultural and food products should be targeted by the tariffs.

The National Cattlemens Beef Association had claimed that the most powerful members of the European Union -- Britain, France and Germany -- do not sell much pork to the United States and would not feel a big economic impact from pork tariffs. But American pork producers said that focusing on pork tariffs would concentrate the effect and translate into higher prices for U.S. beef, chicken and pork.

Some industry observers said they were concerned that the planned duties against the EU exempted Britain from any tariffs. That could allow Denmark and other EU nations to transship pork exports through Britain and on to the United States with no tariffs, they said.

Canada is the other major supplier of U.S. pork imports, selling about $419 million worth of products to the United States last year.

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