Clock ticking on EU-US beef deal

Time is running out for the EU and the US to find a compromise deal on the beef hormone dispute, Commission sources said yesterday.

Discussions will be stepped up this week as a deal is sought before a deadline expires on Thursday.

After this date the US is due to re-apply punishing ‘carousel‘ sanctions against an array of EU exports.

But if no negotiated settlement can be found and the carousel is reintroduced, the EU could bring the US sanction regime to the WTO, sources told Agra Europe.

The EU nonetheless hopes to turn the page on the type of drawn-out WTO litigation procedures which have seen the US repeatedly challenge the validity of the EU hormone ban over the past decade or so.

The WTO has generally found in the US‘s favour and thus permitted the imposition of retaliatory sanctions against  EU imports - although the EU remains adamant that it will continue to block imports of hormone-treated meat.

The two blocs are said to remain committed to a negotiated solution involving preferential market access for non-hormone treated US beef. Officials explained that the beef issue is a crucial testing ground for cooperation with the new US administration on trade disagreements.

Last Update on April 22, 2009