December 23, 2008

The EU has launched a new challenge at the WTO against trade sanctions imposed by the US and Canada over EU restrictions on imports of hormone-treated beef.

A WTO appeal body has 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.

In response, the EU said its legislation on hormones is fully in line with WTO law and that the restrictions are based on scientific evidence showing risks for human health.

WTO judges ruled in March 31 that the US and Canada should scrap restrictions on US$125.3 million worth of EU products that were imposed to retaliate for the import ban on hormone-treated beef.

The US sanctions amount to a 100 percent duty on US$116 million worth of EU imports, while Canada targeted US$9.3 million worth of EU products.