US Considering Reinstatement of Duties on EU in Connection with Restrictions on US Beef Imports

The U.S. is considering reinstatement of tariffs on certain imports from the EU, in connection with alleged EU discrimination against U.S. beef exports, the Office of the U.S. Trade Representative said in a statement (here). An agreement signed by the EU and U.S. in 2009 to allow EU imports of non-hormone-treated U.S. beef “has not worked as intended,” USTR said in its statement (see 09050705). The agreement was renewed in 2013, and expired Aug. 2, 2015 (see 13102316). Before any trade action, USTR will examine the anticipated effectiveness of imposing tariffs and other possible actions, including against non-beef EU products, as well as the effects on the U.S. economy and consumers, USTR said (here).

While the European Commission said the issue should be settled through the Transatlantic Trade and Investment Partnership (see 14032018), “European officials decided after their trade minister's meeting in September not to complete T-TIP this year, [so] now is the time to take action,” USTR said. The U.S. beef industry exports about $6 billion per year on average, and supports about 50,000 U.S. jobs, USTR said. Chief TTIP negotiators of both the EU and U.S. during formal negotiations in October said negotiations on the deal are ongoing (see 1610070025).

USTR claims that the EU’s ban on U.S. beef imports isn’t based on sound science and discriminates against U.S. beef producers, farmers, and ranchers. In a statement, U.S. Trade Representative Michael Froman referenced a 1998 World Trade Organization case lost by the EU for banning U.S. beef. "The EU has failed to live up to assurances to address this issue, and it's now time to take action,” he said. “Today's action holds the EU accountable and is an important step in encouraging the Commission to come back to the table to ensure that American ranchers have access to Europe's market and that European consumers have better access to high-quality U.S. beef."

Prominent voices on agriculture in the House supported USTR’s action. House Agriculture Committee Ranking Member Collin Peterson, D-Minn., in a statement said “there is no doubt” U.S. beef products are safe, adding that the EU’s prohibition is not based on fact. House Modern Agriculture Caucus Chairman Adrian Smith, R-Neb., pledged to push the EU to adopt scientific regulations to enhance global trade and food security. "The EU, our largest trading partner, unfortunately maintains numerous unscientific policies focused on protecting European agriculture producers from competition with American producers rather than promoting food safety,” Smith said. “It also closes off many more markets to U.S. producers in countries around the world which defer to the EU on these regulatory issues.”

The interagency Section 301 Committee will hold a public hearing at 9:30 a.m. on Feb. 15, to continue on Feb. 16 if necessary. The committee will accept comments and requests to appear at the hearing, which must include a summary of testimony, until Jan. 30. Feb. 22 is the deadline for post-hearing comment submission. USTR said it is “particularly interested” in how tariff reinstatement could impact U.S. consumers and small- or medium-sized businesses. Beef, pork, cheese and truffles were among products subject to a 100 percent import tariff before the agreement went into effect (see 09081310). Section 301 of the Trade Act of 1974 allows the president to retaliate against discriminatory foreign government practices that burden U.S. commerce.