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USTR Requests Comments on WTO Dispute Over Continued U.S. Imposition of 100% Duties on Certain EC Products in Beef Hormone Dispute

The Office of the U.S. Trade Representative (USTR) has issued a notice stating that on January 13, 2005 it received a request from the European Communities (EC) for the establishment of a World Trade Organization (WTO) dispute settlement panel (DSP) regarding the U.S.' continued suspension of obligations to the EC in the dispute over the EC's measures concerning beef produced with growth hormones.

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In 1998, the WTO found that the EC's import ban on beef produced with growth hormones is inconsistent with WTO rules. As a result of this finding, the U.S. imposed 100% duties on certain products from certain EC member countries with a time of entry on/after July 29, 1999. These 100% duties are still in effect and are listed in HTS 9903.02.21 through HTS 9903.02.47. (See ITT's Online Archives or 07/20/99 and 07/21/99 news, 99071944 and 99072075, for BP summaries of the U.S.' imposition of 100% duties on certain EC products.)

EC Asserts it has Complied with WTO Recommendations and Rulings

The USTR states that the EC asserts that it has put into force new legislation that brings it into conformity with the recommendations and rulings of the Dispute Settlement Body (DSB) and its obligations under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement).

Among other assertions, the EC states that by failing to discontinue suspension of obligations to the EC, the U.S. has breached certain obligations under the General Agreement on Tariffs and Trade (GATT 1994).

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

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

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

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, partial list):

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, partial list):

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.

Subscribers should note that the United Kingdom (UK) was excluded from the imposition of 100% duties. It also appears that these 100% duties do not apply to Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia, all of which joined the EC in 2004.

- comments should be submitted on or before April 1, 2005 to be assured of timely consideration

USTR Contact - Jay Taylor (202) 395-9583

USTR Notice (FR Pub 02/22/05) available athttp://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-3368.pdf

BP Note

On February 17, 2005, a DSP was established to examine the U.S.' continued sanctions against the EC's import ban on hormone-treated beef. The USTR states that the DSP will hold its meetings in Geneva, Switzerland and is expected to issue a report on its findings and recommendations within six to nine months after establishment. The WTO has also established a DSP to examine Canada's continued sanctions regarding the same issue.