EU's Failure To Comply with WTO Rulings on the Beef Hormone Ban
                                            Release No. 0213.99

Statement
                               by
            Secretary of Agriculture Dan Glickman  
on the EU's Failure To Comply with WTO Rulings on the Beef Hormone Ban 
                                
                          May 14, 1999
                                
                                
     "Yesterday, the European Union failed to meet the deadline set by the
World Trade Organization to end its arbitrary and scientifically unjustified
ban on imports of U.S. beef from hormone-treated cattle.  Although the EU knew
about yesterday's deadline for 15 months, it still failed to lift the ban and
comply with the WTO decision.  

     "There is no legitimate reason for the EU's unfair restriction on free
trade.  The WTO decision recognizes that American beef is safe.  Scientific
study after study confirms this.  

     "This is the second time the EU has refused to comply with a WTO ruling. 
The EU recently failed to implement the WTO's finding on bananas.  Every other
WTO member faced with a similar situation has come into compliance, on time,
as required.  When the EU became a WTO member, it agreed to abide by all WTO
rules.  And now it is time for the EU to honor its commitments under the
international agreements it voluntarily and willingly accepted.  If it does
anything less, the EU will jeopardize the credibility and integrity of the
WTO.  

     "Unfortunately, the EU's unwillingness to meet its international
obligations leaves the U.S. with no choice.  Starting today, we are moving
ahead with steps necessary for WTO authorization to suspend trade concessions. 
This authorization will allow us to impose one hundred percent tariffs on
specific EU agriculture, and consumer products as early as mid-June.  Without
the EU's illegal ban, we estimate that exports of U.S. beef would reach about
$202 million per year.  Therefore, we will request authorization from the WTO
to suspend concessions equal to this amount.  

     "Although we plan to submit our request to suspend trade concessions to
the WTO, we are still willing to discuss the issue of compensation, as an
interim step until the EU lifts its import ban.  But, if we do not reach
agreement with the EU, we will exercise our rights under the WTO."

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