Release No. 0265.96

                                     Jim Petterson (202) 720-4623
                                     Laura Trivers (202) 720-4623

GLICKMAN AND BARSHEFSKY ANNOUNCE WTO PANEL TO REVIEW EU HORMONE BAN

    WASHINGTON, May 20, 1996--Agriculture Secretary Dan Glickman and Acting
USTR Charlene Barshefsky announced today that the Dispute Settlement Body of
the World Trade Organization (WTO) has established a panel to examine the
European Union's ban on imports of beef from animals raised with benefit of
growth hormones.

    In commenting on today's action, Ambassador Barshefsky said, "We are
very pleased that the Dispute Settlement Body has established a panel to
hear our long-standing complaint.  The EU Hormone Directive has no
legitimate basis and we believe the panel will find the Directive violates
the EU's obligations under the WTO agreements.  Our pursuit of this dispute
underscores the Administration's firm commitment to eliminate unfair trade
practices that restrict U.S. exports."

    The EU directive has severely restricted exports of U. S. beef to the
continent.  When the EU imposed the ban in 1989, the United States attempted
to challenge it under the General Agreement on Tariffs and Trade, but the EU
blocked the establishment of an experts group to examine the Directive. 
Under new WTO rules, the EU can no longer block the establishment of a
panel.

    USDA Secretary Dan Glickman also commended the WTO for establishing a
panel today, stating, "The evidence is overwhelming that proper use of these
hormones poses no danger to human or animal health.  Even scientific groups
composed by the EU have found that these hormones are safe when used
properly.  We hope that the panel process will lead to a re-opening of the
EU market to U.S. beef -- which would benefit consumers and producers on
both sides of the Atlantic."

    The U.S. requested consultations on this matter with the EU -- the
first step in the WTO dispute settlement process -- on January 26, 1996. 
Consultations were held in Geneva on March 27, 1996, with Australia, Canada
and New Zealand joining the United States.  Because these consultations
failed to produce a resolution, the United States decided to request a
dispute settlement panel.  The panel will hear the arguments of both sides
and report its findings around the end of this year.
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