U.S., EU Sign Beef Deal

It's official - the U.S. has agreed to drop plans to impose additional retaliatory duties against the European Union's ban on beef fed with hormones in return for duty-free access for hormone-free U.S. beef. The deal was signed Wednesday. U.S.Trade Representative Ron Kirk notes the EU is one of the few markets to ban beef from cattle given growth-promoting hormones - despite the fact it's perfectly safe to eat - but said the agreement is seen as a pragmatic way forward.

The EU will provide duty-free access to 20-thousand metric tons of hormone-free beef from the U.S. for each of the next three years. That's reportedly in addition to an existing quota for 11-thousand-five-hundred tons for U.S. beef that carries a 20-percent tariff. The U.S. can maintain existing duties related to the EU's failure to comply with the World Trade Organization ruling against its hormone-fed beef ban.

In the fourth year - the duty-free quota can be increased to 45-thousand tons for one year. In return - the U.S. has agreed to drop all duties related to the WTO case. After that fourth year - the EU and U.S. can return to the table to discuss the possibility of continuing the agreement.

In the meantime - both sides have agreed not to take further action in the WTO dispute for the next 18 months. Either party can request a WTO dispute panel after that time - but the findings wouldn't be issued until the end of the fourth year of the agreement.