US EU Hormone Beef Ban- Background

The United States and the EU have had a long

standing dispute over hormone treated beef/meat ban
(use of growth promotants in Beef) dating back to
1980s. The ban was done as part of consumer health
and safety measures, which also formed a part of EU
rules and regulations. US people perceived this as a
form of disguised protectionism by EU to reduce
imports.WTO tried to resolve the dispute and after a
series of negotiations in May 2009, both the countries
signed MoU- US would reduce higher duties on EU
imports and EU would have higher market access to
US Beef exports without growth promotants.
USE OF HORMONES IN MEAT PRODUCTION
US was using growth promotants in about 90% of
commercial cattle (figure approached 100%); these led to
faster growth of cattle; leaner carcass line and reduced the
need for feed and other inputs which meant lower production
costs.
Estradiol, Progesterone, Testosterone, Zeronal, Trenbolone
Acetate are the major promotants. Melengestrol Acetate is
approved as a feed additive.
They have found to have no physiological significance on
humans.
However, only in United States and countries like Canada,
Aus, NZ, SA these have been approved as EU continues to
restrict hormone-treated meat products from other countries
as per EU norms.
THE EU Hormone Ban

EU enacted its ban on the production and importation of

hormone-treated meat products; banned the six above
mentioned promotants (later amended; permanently banned
estradiol and others provisionally).
Done as a part of safety policy (consumer health safety and
welfare).
EU justified the ban saying it led to hormonal irregularities in
human beings; had health effects.
In 1990s, outbreak of a fatal brain disease BSE in cows
further increased opposition from EU and people in EU (both
consumers and beef producers) and the ban remained strong
though the hormones had nothing to do with the disease.
HORMONE DISPUTE IN THE WTO

WTO tried to resolve the dispute but EU was

strong on this citing health risks, consumer
safety and promotant side-effects. Laws on
beef ban eas re-issued and amended several
times by EU (1988,96,2003)
US in retaliation put high import tariffs on
selected EU agri products.
WTO gave a mixed ruling henceforth allowing
for both the tariffs and ban to continue.
WTO Proceedings- Overview
April 1996- US requested WTO resolution of this dispute; Canada, NZ, SA
joined US.
August 1997- WTO report stated ban was not in compliance with the SPS
requirements.
February 1998- A scientific study was asked to be done on the hormone
treated meat. (15 month deadline was given)
July 1999- US started imposing trade tariffs.
1999- studies conducted; one promotant estradiol was found to be
carcinogenic; 2003- accordingly one was permanently banned and others
provisionally.
Case just went on- parties alternately appealing.
March 2008- WTO panel found fault with all three parties.
October 2008- WTO Appellate body gave mixed ruling.
May 2009 MoU after series of negotiations was signed.
EU reviews and US response to it

Scientific Committee on Veterinary Measures related to

Public Health (SCVPH)- found no convincing
evidence found.
European Food Safety authority (EFSA)- later reviewed
in 2007- found one promotant carcinogenic and others
also harmful. This reinstated EU ban cause.
US denied saying- they were safe; US FDA reports
backed them.
US claimed- more attention for that one major pollutant;
no solid evidence; SPS compliance. Wants to discontinue
the ban; supported by Industry groups in US.
US Trade sanctions and Retaliation

Initial 1999 ban- 100% Tariff on EU imports valued at $93

million.
Import duties in excess of bound rates were imposed.
List of products included- beef and pork products, onions,
carrots, tomatoes, juices targeting several countries like
Germany, Italy, Denmark, Sweden etc.
2009- revised the list of products; carousal retaliation
provision which called for rotation of products for trade
tariffs ; applied to new EU expanded countries; new products
came in-processed fruits, fruit juices, nuts etc; tariff on Cheese
from 100% to 300%. Further escalated the issue.
March 2009- after talks; reduced the list of products.
2009 MoU
May 13, 2009- after a series of negotiations, MoU was signed. It consisted
of three phases:
Phase 1: Increased market access for beef without growth promotants to EU;
US would impose tariffs on reduced list of products.
Phase 2: access expansion from 20000 metric tons to 45000 tons of beef
products to EU.
Phase 3: same quantity for EU; US removes import duties;
Rotation of products was called off.
Deal was extended to two years- from October 2013-15.
US-EU dispute raised even in current negotiations- still problems exist;
meat-exporting countries demand equal High Quality Beef; still some beef
products are banned in EU; countries demand equal trade advantage;
Gilda Industries, US- wanted toasted bread removed from tariff list;
subsequently removed; imported water was added to the list.
TRADE EFFECTS- GRAPH
CONGRESSIONAL INTEREST

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