WTO Issues "Mixed Ruling" in U.S.-EU Beef Hormone Dispute

The DSP ruled that the U.S. has violated certain of its WTO obligations by maintaining continued trade sanctions against the EU in retaliation of a EU ban on beef produced with growth hormones.

At the same time, the DSP ruled that the U.S. has not violated certain other WTO obligations to the extent that the EU's ban on certain hormone-treated beef remains WTO-inconsistent.

DSP Ruling is Part of Long-Standing Dispute

In 1998, a WTO DSP found that the European Community's (EC's) import ban on beef produced with growth hormones was inconsistent with WTO rules. Consequently, the U.S. imposed 100% duties on certain products from certain EC member countries with a time of entry on or after July 29, 1999.

The EC contended that it had then removed the WTO-inconsistent measures (by adopting Directive 2003/74/EC of September 2003), but that the U.S. continued to maintain its 100% duties. In February 2005, a DSP was established to examine this issue.

Highlights of EC Product/Country Combinations Subject to 100% Duties

The following are highlights of the EC country/product combinations that continue to be subject to 100% duties by the U.S. as a result of the U.S.-EC beef hormone dispute (partial list):

1. Certain articles that are the product of Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, or Sweden (HTS 9903.02.21 through HTS 9903.02.38):

Fresh or chilled meat of bovine animals

Frozen meat of bovine animals

Fresh or chilled meat of swine

Roquefort cheese

Fresh or chilled truffles

Dried carrots

1. Certain articles that are the product of France, Germany, or Italy (HTS 9903.02.39):

Tomatoes prepared or preserved otherwise than by vinegar or acetic acid, whole or in pieces

1. Certain articles that are the product of France or Germany (HTS 9903.02.40 through HTS 9903.02.42):

• Soups and broths and preparations therefor
• Single yarn (other than sewing thread), not put up for retail sale, etc.

1. Certain articles that are the product of France (HTS 9903.02.43 through HTS 9903.02.47):

Chocolate and other food preparations containing cocoa, in blocks, slabs, etc.

Products suitable for use as glues or adhesives (other than animal glue, including casein glue, but not including fish glue) put up for retail sale, etc.

WTO Panel Recommendations

In light of its findings, the DSP recommends that the U.S. bring its measures into conformity with its WTO obligations. However, in order to ensure prompt settlement of the case and to determine the compatibility of EC Directive 2003/74/EC with the covered agreements, the DSP also recommends that the U.S. have recourse to the rules and procedures of the Dispute Settlement Understanding without delay.

(See ITT's Online Archives or 07/20/99 and 07/21/99 news, 99071944 and 99072075, for BP summaries of imposition of 100% duties in 1999. See ITT's Online Archives or 02/23/05 news, 05022325, for BP summary of the USTR's request for comments on this dispute.)

USTR press release on DSP findings (dated 03/31/08) available at http://www.ustr.gov/assets/Document_Library/Press_Releases/2008/March/asset_upload_file376_14683.pdf

CBP Beef Hormone Implementation notice (dated 04/10/07) available at http://www.cbp.gov/xp/cgov/import/cargo_summary/beef_hormone_implementation.xml

WTO press release on "U.S. - Continued Suspension of Obligations in the EC Hormones Dispute" (DS320) and "Canada - Continued Suspension of Obligations in the EC Hormones Dispute (DS321) with links to the respective DSP reports (dated 03/31/08) available at http://www.wto.org/english/news_e/news08_e/320r_321r_e.htm