U.S. Officials Back
Down On EU Beef Ban

BRUSSELS, Belgium — The United States has agreed to tighten controls on hormone-free beef exports after the European Union claimed it found hormone residue in an April shipment.

The EU, which has so far refused to comply with a World Trade Organization ruling requiring it to drop its hormone-free demands entirely, threatened to ban imports of even hormone-free U.S. beef after June 15. The move was seen by most observers as an overt escalation of the trade conflict.

While U.S. Trade Representative Charlene Barshefsky initially reacted angrily, other U.S. officials in talks with the EU took a more conciliatory approach. The officials, according to the EU's ruling commission, did not dispute the EU findings and were anxious to correct the problem of residues.

The U.S. asked the EU for a list of slaughterhouses which supplied the meat analyzed by the EU and said they were reviewing controls at those slaughterhouses and would not sign meat export certificates to the EU unless U.S. officials were satisfied the meat met the established standards.

"We welcome the United States' constructive approach," said commission spokesman Gerry Kiely.

The EU imports from 7000 to 8000 tons of U.S. hormone-free beef a year. The high quality meat sold in restaurants and shops is worth about $20 million.

The EU initially had proposed a ban on hormone-free beef, but after negotiations with U.S. officials, indicated less severe steps could be taken. The EU already has a ban on the import of U.S. beef from cattle raised using hormones, a ban which the World Trade Organization has ruled illegal. The EU has been ordered to eliminate its decade-old beef ban by May 13, but has already said it won't honor the deadline.

The U.S. plans to retaliate with trade tariffs of up to $500 million.