May 7, 2009

The European Union (EU) and the United States have ended their lengthy dispute over hormone-treated beef after reaching a provisional agreement on Wednesday (May 6).

After talks with US Trade Representative Ron Kirk, EU trade commissioner Catherine Ashton in a statement said both parties have "reached an understanding that provides a pragmatic way forward in the long-running beef dispute".

Ashton said the agreement was mutually beneficial and an effort will be made to quickly implement it.

Under the agreement, the US would provide additional duty-free access to the EU market for high-quality beef produced from cattle that have not been treated with growth-promoting hormones.

The US will also maintain existing sanctions and will not impose new ones on EU products during the initial three-year period, and will eliminate all sanctions during the fourth year.

The two sides will also refrain from further litigation at the World Trade Organization (WTO) regarding the EU's ban on beef treated with certain growth-promoting hormones for at least 18 months.

The two sides will seek to conclude a longer-term agreement before the end of the four-year period.

An EU ban on hormone-treated beef has been in effect since the early 1980s. The ban was challenged by the United States and Canada at the WTO in 1996.

The WTO ruled against the EU in 1998 and permitted the US and Canada to impose annual sanctions on EU goods to the value of 116.8 million euros (155.6 million US dollars).

The EU argued in 2003 that it had scientific grounds to ban hormone-treated beef and that trade rules allowed such restrictions. The EU argument, however, was rejected by the United States and Canada.