Cattle Feeders Support Plan
To Strike At Eu Beef Barrier

AMARILLO — Texas cattle feeders say they support new moves by trade negotiators to retaliate against the European Union for not opening their markets to U.S. beef.

The United States, already in a bitter trade fight with the European Union over bananas, is preparing a new list of sanction targets to retaliate against Europe's refusal to allow the sale of American beef treated with growth hormones.

"We're extremely supportive," says Dr. Richard McDonald, president of the Texas Cattle Feeders Association. "We're extremely pleased that the STR (Special Trade Representative) has decided to finally get aggressive."

"It's a shame they couldn't be more aggressive years ago," adds Neal Odom of McLean Feeders.

McDonald notes that the May 13 deadline established by the World Trade Organization is closing in for the EU to open their markets to American beef.

"We need to remember that this is a trade issue," McDonald notes.

He says it has nothing to do with health or growth promotants, but has been used as a trade barrier by European countries since 1989.

"The EU is trying to make use of growth promotants a safety issue," says Odom. "It is not a safety issue."

He says it has been and is being used by the Europeans as a trade barrier for their own political purposes.

The preliminary target sanction list covers more than $900 million in European imports, primarily farm products. The sanctions, which would effectively double the price of the products in the American market, would go into effect at the latest by early July, administration officials say.

Peter Scher, the U.S. trade negotiator on agricultural matters, says the list covers European agricultural imports to the United States as well as some manufactured goods.

The new target list will be pared after an April 21 public hearing which will allow American companies to make a case that certain products should be excluded from the final sanctions list because of potential harm to U.S. businesses.

The U.S. beef industry says it is losing $500 million in sales annually because of Europe's refusal to abide by the WTO finding that there is no scientific justification for Europe's ban on imports of American beef produced with cattle-growing hormones.

European officials have resisted sales of hormone-treated beef, claiming fears about possible long-term health consequences.

"The U.S. has gone through the proper channels," Odom says. "The Europeans keep thumbing their noses at the Commission. The time is now to do this. The EU hasn't left us any alternative."

The growing trade tensions between the United States and the 15-nation European Union, America's largest trade partner, are coming at a time when the Clinton administration is under heavy political pressure because of a skyrocketing American trade deficit.

The new target list is in addition to $520 million in European products targeted in the earlier trade fight involving European restrictions on banana shipments by American companies.

In the banana fight, the United States wants to impose 100 percent tariffs on a variety of European luxury items ranging from Scottish cashmere sweaters to fancy French handbags.

The administration put the punitive tariffs in effect earlier this month on a conditional basis while an arbitration panel of the World Trade Organization determines whether the $520 million damage claim by U.S. banana companies is justified.