The US and EU settle their beef over new deal
The US government has agreed a new trade deal which welcomes more non-hormone treated beef into the EU.
The deal which was agreed in early 2019 was officially signed on the 2nd August. It allows the US to export nearly triple its annual allowance, as current regulations only allow 13,000 metric tons annually duty free into Europe. In the new and improved deal American producers will initially be allowed a duty-free tariff rate quota of 18,500 metric tons annually.
Over the next seven years the deal will see that grow to 35,000 metric tons annually which is believed to be valued at $420m. Although the deal is signed it still awaits EU parliament approval which is expected to be agreed in Autumn 2019.
This announcement comes one month after the EU agreed a trade deal with the Mercosur (group of south American countries), that will allow 99,000 tonnes of south American beef to enter the EU market annually.
The long stand off between the US & EU has been as a result of the hormones used in the production of their beef. There are currently six hormones approved for use in beef production in the USA. Three natural hormones (testosterone, estradiol & progesterone) and three are chemically synthetic hormones (melengestrol acetate, trenbolone acetate & zeranol). The European Union placed a ban on all six hormones used in the USA beef industry.
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