The European Council on Thursday adopted a modification to regulation opening an autonomous tariff quota for imports of high-quality beef following a first reading agreement with the European Parliament.
This text will finally bring to an end the long-standing trade dispute between the EU, the U.S. and Canada on the use of "hormones" in beef within the framework of the World Trade Organization (WTO).
By this regulation, the EU opens an additional autonomous tariff rate quota for high-quality beef that is not treated with hormones. At the same time, the U.S. has eliminated the sanctions on EU products.
As a first step, an autonomous tariff quota was established in 2009 for imports of 20,000 tons of high quality beef, and this regulation provides for two further increases of this autonomous tariff quota: from 2012 July to 21,500 tons and from August to a total of 48,200 tons. The customs duty of this tariff-rate quota will remain fixed at zero.
In 1998, a WTO report found that the EU ban on imports of meat and meat products from cattle treated with certain hormones for growth promotion purposes was inconsistent with the agreement on sanitary and phytosanitary measures (SPS Agreement). The U.S. and Canada obtained authorization from the WTO for the suspension of concessions to the EU in the annual amounts of US$116.8 million and CDN$11.3 million, respectively.
An agreement signed in 2009 foresees a three-phased arrangement which progressively reduces the level of sanctions imposed by the U.S. on products from the EU, while the latter progressively increases the tariff-rate quota for high-quality beef that is not treated with growth hormones.
The first-phase tariff-rate quota for high-quality beef of 20,000 tons was established by regulation. In a second phase, it is scheduled that the U.S. will suspend all remaining sanctions while this regulation expands the tariff rate quota by additional 25,000 tons.
In March 2011, an additional memorandum of understanding was signed between Canada and the EU about the suspension of all sanctions imposed by Canada. It stipulates further expansion of the EU autonomous tariff rate quota for high quality beef by 1,500 tons in the first phase, and by additional 1,700 tons ni the second phase. The timing foreseen for the first and second phases for U.S. and Canada is the same.
According to the provisions of the regulation adopted on Thursday, the second phase will begin on August 1, 2012.
Both Canada and the U.S. have suspended all related sanctions on EU products in the meantime.
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