000414 U.S. Wants Proof EU Open to Hormone-Free Beef

Washington - The United States is looking for proof that U.S. exporters can actually ship “hormone-free” beef to the European Union, a top U.S. trade official said.

“We want to see some meat move,” Greg Frazier, the new special U.S. negotiator for agricultural trade, told reporters after a speech to the National Cattlemen's Beef Association. “There's no reason for it not to be moving.”

Frazier, who was formerly USDA Secretary Dan Glickman's chief of staff, told the cattle industry group that resolving a dispute with the EU over “hormone- treated” beef was one of his top priorities.

The EU has banned imports of beef from cattle raised with artificial growth hormones for more than a decade, even though U.S. regulatory agencies and numerous international studies have found the practice to be safe.

The U.S. cattle industry has always considered the ban to be a measure to protect EU cattle producers from competition, even though the EU says it is based on food safety concerns.

Because of the ban, the World Trade Organization gave the United States permission last year to impose 100-percent tariffs on nearly $117 million of EU goods.

The NCBA has said it would be willing for the United States to drop those sanctions in exchange for increased access to the EU market for beef produced without artificial hormones.

Last year, the United States voluntarily halted “hormone-free” beef sales to the EU after artificial hormone residues were found in some shipments.

The U.S. Agriculture Department worked with the cattle industry to revamp controls on hormone-free beef production and last month the EU's Standing Veterinary Committee accepted the new U.S. system.

Even so, U.S. cattle producers remain skeptical the EU is really serious about allowing substantial hormone-free beef imports from the United States, Chandler Keys, NCBA vice president, told reporters.

“We're not even going to talk to them about how we resolve this hormone case until they get the hormone-free program up and running with some trade flowing,” Keys said.

Frazier, who still must be confirmed by the Senate, spoke to the cattle industry group in just his third day on the job.

On another issue, he was optimistic Congress would approve permanent normal trade relations with China when it votes on the issue in the coming weeks.

“I personally think the votes are there,” Frazier said. But it will be a tough fight, he said.

China has pledged to slash tariffs on beef and other agricultural products once it becomes a member of the WTO.

WTO rules require the United States to approve PNTR once China becomes a member, the White House says. Currently, the United States reviews China trade status each year.

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