Feb 23, 1989

U.S. EEC HORMONES DISPUTE PUT OFF IN GATT.

GENEVA, FEBRUARY 21 (IFDA)— The dispute between the European Community and the U.S. over the issue of hormone treated meat and U.S. unilateral imposition of tariffs on imports from the EEC was put off in the general agreement, pending bilateral consultations to settle the issue.

Like the action against Brazil over patents, the U.S. action against EEC (purportedly acting with EEC’s GATT rights) has been taken under section 301 of the U.S. trade and tariff act.

The EEC has banned use of hormones in raising cattle for meat inside Europe, and has also banned imports of such beef.

The EEC’s domestic ban went into effect in January 1988. The ban on imports went into effect in January 1989, after deferral for nearly a year pending efforts to find a solution to U.S. objections.

The U.S. retaliated by imposing 100 percent penal tariffs on a range of products imported from the EEC.

The EEC has raised the issue several times, seeking the establishment of a GATT panel, but the U.S. has blocked these moves.

The U.S. has instead sought the adjudication of this issue, in terms of scientific evidence warranting the EEC conclusion that hormone treated meat is bad for health, within the GATT code committee on technical standards.

The EEC has however said that when it had banned production of such meat internally, it was entitled to ban imports too.

With the dispute escalating steadily, and the EEC due to have imposed counter-tariffs effective end of February, the two sides last weekend held talks in Washington, and as a result would appear to have reached a temporary truce.

The two sides have agreed to a 75-day coolife off period, during which a joint committee would seek solutions.

Pending this, the EEC ministers have put off the enforcement of the EEC counter-tariffs.

The U.S. and EEC are also due to hold consultations in GATT, under article XXIII, early in March in Geneva, the GATT spokesman announced Tuesday.

When the EEC complaint against the U.S. came up Tuesday, the EEC agreed to put off a decision on its request, noting that the U.S. was still not in a position to agree to the panel reference.

The Community, its delegate Amb. Tran Van-Thinh declared was ready to wait as long as it was necessary for a positive response from the U.S., adding that it was important for all GATT CPS to condemn unilateral sanctions of the kind undertaken by the U.S.