Beef Hormone Dispute Headed to WTO

The European Commission has reportedly indicated that it will file a World Trade Organization (WTO) challenge to the U.S. decision to impose new tariffs on European Union (EU) products involved in sanctions stemming from a dispute over beef hormones. The EU has banned hormone-treated beef since the early 1980s, and the WTO ruled in 1998 that the ban violated trade rules, thus opening the door for U.S. and Canadian trade sanctions. While the EU contends that it has scientific grounds to support the ban, the United States and
Canada have maintained their trade sanctions against the European bloc.

According to a French Roquefort cheese producer, 100 percent tariffs have been imposed on his products for nine years; a new sanctions update has increased the penalty to 300 percent. “Sales of Roquefort to the United States will be finished,” he reportedly said. At issue is a Bush administration decision to suspend the existing sanctions, thus allowing Washington to revise its list of targeted products every six months. A commission spokesperson reportedly said this action would increase uncertainty for exporters and “is most regrettable in view of many attempts by the EU to find a solution to the long-standing trade dispute over hormone-treated beef. A large number of EU exporters will be hit by these illegal sanctions. We look forward to working with the new administration to address this situation.” See Agence France
Presse, January 15, 2009.