E.C. & U.S. Fulfill First Phase of Beef Hormones MOU

September 23, 2009

The Office of the U.S. Trade Representative (USTR) announced yesterday that it has fulfilled the first phase of U.S. obligations under the U.S.-E.C. Memorandum of Understanding (MOU) on Beef Hormones dispute by canceling modifications to list of products subject to 100% duties that were scheduled to go into effect on September 19, 2009. The E.C. had already completed its obligations under the first phase of the MOU by opening a new 20,000 metric ton duty-free, tariff rate quota (TRQ) for beef on August 1, 2009.

This action leaves in place the additional duties that have been in effect since March 23, 2009 on a reduced list of products. For a list of products still subject to 100% duties, click here. USTR had issued several Federal Register notices delaying the proposed duty changes while the EU took the necessary steps to implement the agreement on its end. With that process now complete, the USTR notice explicitly terminates the additional duties announced in January.

The first phase of the MOU ends August 3, 2012, at which time the U.S. or E.C. can choose to drop out of the agreement. If both sides opt to move forward to the second phase, the E.C. would expand its beef TRQ to 45,000 metric tons and the U.S. would suspend all additional duties imposed in connection with the dispute.