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News trade agreement

US gains advantage in export of hormone-free meat to EU

6 August 2019 - Kimberly Bakker

The United States and the European Union signed a new trade agreement in early August. This will allow the United States to triple its export of hormone-free meat to the European Union. Since total imports into the European Union will not be expanded, the deal gives the country an advantage over other countries.

The treaty allows the United States to triple its annual duty-free exports of hormone-free meat to the European Union over the next 7 years. U.S. meat producers can currently export 13.000 tons duty-free. The plan is that this will be 18.500 tons at the start of the project and expanded to 7 tons in 35.000 years. It would then be a total value of $420 million (€375 million). The treaty still needs to be approved by the European Parliament first.

Mixed reactions
The new plan is generating mixed reactions. An Irish livestock association, Angus Woods, said the deal is negative for countries where the sector is already in crisis. This is partly because the import of hormone-free meat into the European Union will not be expanded, but will remain at 45.000 tons. In short: the United States will get a larger share. According to the Irish association, this gives the country an advantage over other countries.

Sonny Perdue, the US Secretary of Agriculture, disagrees. "European consumers demand quality and American meat producers can provide that quality," he said. Robert Lighthizer, the trade representative who signed the agreement, also believes that quality has been leading. Several other American interest groups say they are happy with the plan, but would now like to see US President Donald Trump focus on trade tensions with China and Mexico.

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Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

Analysis Grains & Commodities

EU imports significantly less wheat and maize

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