September 13, 2005

WTO hears North American-EU dispute over hormone-raised beef

The World Trade Organization (WTO) has recently started hearing the dispute between the US and EU regarding the use of growth-boosting hormones in beef.

The EU first banned the import of hormone-raised beef during the mid-1980s. In response, the US brought up the matter to the WTO for dispute settlement in 1996. Canada also followed suit.

In 1999, the WTO ruled in favour of the US and Canada. Since then, both countries have imposed retaliatory trade restrictions and duties on the EU, under a WTO-approved programme.

In response, the EU said its decision was based on the new EU Hormones Directive in 2003, which followed a full scientific risk assessment conducted from 1999 to 2002.

The current hearings would determine whether the retaliatory duties should be lifted, if the WTO agreed the EU has complied with the WTO's 1997 rulings by completing proper scientific studies.

Before the beef hormone ban in 1985, the EU market was worth about US$100 million annually for US beef exporters, industry reports said.