January 16, 2009

The US is modifying the list of EU products subject to additional duties in connection with World Trade Organisation (WTO) rulings in a row involving hormone-treated beef.

The modifications make additions to and deletions from the list of products subject to additional duties. The modifications also change the list of EU member states whose products are subject to the duties and for one product, they increase the level of the additional duties.

US Trade Representative Susan Schwab announced the modifications in a bid to resolve the dispute that has been ongoing for more than a decade. Schwab also said the modified duties remain within the level authorised by the WTO.

The EU has rejected imports of hormone-treated US and Canadian beef for years, leading the US and Canada to impose sanctions on certain EU products in retaliation.

In October, the WTO Appellate Body ruled that the US and Canada has the right to continue imposing trade sanctions until the dispute is resolved. However, a WTO appeal body has recently asked for a reconsideration of that ruling against the EU. The appeal body also dismissed a finding that suggested the EU's policies violate global trade rules.

In response, the European Commission said Thursday (Jan 15) it planned to take WTO action against the US for the revision.

The revision move by the US is not only forcing the EU to take the case to the WTO, but has also made it much more difficult for the two sides in finding a mutually agreed settlement to the ongoing beef dispute, according to the European Commission.