Industry News

U.S. Removes Retaliatory Tariffs in EU-U.S. Beef Hormone Dispute

May 31, 2011


The Office of the U.S. Trade Representative (USTR) recently announced that it has eliminated its retaliatory sanctions on imports from the European Union, including terminating all of the remaining 100% duty rates imposed on certain products from the European Union. The decision to remove the tariffs follows an October 2010 Court of Appeals for the Federal Circuit (CAFC) ruling that confirmed the Court of International Trade’s ruling. The ruling confirmed that retaliatory duties in the beef hormone case terminated by operation of law on July 29, 2007, because the U.S. industry failed to file a request for continuation of the duties, which was required by statute. The retaliatory tariffs were established after the European Commission shut out U.S. meat from hormone-treated animals in defiance of 1999 World Trade Organization Rulings in the EU-U.S. beef hormones dispute.

In May 2009, the U.S. and the EU signed a Memorandum of Understanding (MOU) in the EC-Beef Hormones dispute, which provided for the EU to make phased increases in market access for U.S. beef products and for the U.S. to make phased reductions in the retaliatory duties. According to the USTR’s announcement in the Federal Register on May 27, 2011, the USTR decided, in light of the CAFC ruling, to move up the termination date from the agreed upon August 2012 start of the second phase of the MOU. The USTR stated that the MOU is operating successfully and providing increased market access for U.S. beef producers. The USTR also stated that the U.S. continues to have an authorization from the WTO Dispute Settlement Body, and the right under the MOU, to suspend concessions on EU products, and will continue to monitor implementation of the MOU.

The remaining additional duties imposed in connection with the EC-Beef Hormones dispute are terminated with respect to:

  • Products that are entered, or withdrawn from warehouse, for consumption on or after May 27, 2011
  • Unliquidated entries made prior to May 27, 2011, or withdrawn from warehouse, for consumption after July 29, 2007
  •  Products that were entered, or withdrawn from warehouse, for consumption after July 29, 2007, where the liquidation of the entry is not final

For further information, contact a Barnes/Richardson attorney.