January 2, 2009

EU restarts negotiations on US beef ban

The EU has started new trade negotiations with the US regarding the use of hormones in beef.

The new negotiations follows in the wake of the newly imposed ban on EU beef by the US and Canada.

The EU has been in a deadlock with the US and Canada for several years over this issue, leading to the two countries implementing retaliatory trade restrictions on certain EU products.

The legitimacy of the EU ban has now been formally recognised by the World Trade Organisation (WTO), following some minor modifications. 

The WTO has also recognised the right of the US and Canada to impose trade sanctions against the EU.

However, a WTO appeal body has recently asked for a reconsideration of an earlier ruling against the EU. The appeal body also dismissed a finding that suggested the EU's policies violate global trade rules, leading to the EU launching a new challenge against the WTO's support of the trade sanctions.