President Trump Inks Deal With European Markets For U.S. Beef Exports
Sources in the EU familiar with a deal to benefit U.S. Hormone free beef exports, say it will be announced shortly. President Trump is expected to make the announcement at the White House on Friday.
U.S. and European officials have been trying to hammer out a deal for at least two months, according to a source. The source who was present at some of the meetings, said at times results were very mixed. The deal in part would give U.S. Beef farmers a share in sales of 45,000 metric tons of hormone free beef.
With other negotiations going on with other countries, this news is very welcomed by U.S. Beef farmers. Experts weighing in on this deal, said this is an important deal because the two sides are each other’s biggest trade partners. President Trump has been trying to solidify trade deals with several countries, ‘some are slow going.’
Other Trade Issues With Europe Over Cars Still Remain Up In The Air
Negotiators are hopeful, that this beef deal may help the EU with some issues regarding cars going into the U.S. The U.S. Trade Representative Robert Lighthizer and the European Ambassador to the U.S. are expected to sign the deal on Friday.
The crux of the agreement benefits U.S. cattle farmers. They will be entitled to 80% of all beef that is sold to Europe yearly. This deal will be in place for the next seven years, when the deal would have to be renegotiated.
The first metric tons of beef that are transported between the U.S. and Europe are set to begin soon. Under this deal U.S. Farmers are entitled to 40% of this first beef shipment. The quota amounts were set over ten years ago, the deal centers on the percent US farmers are guaranteed.
The Quota Was Initially Set To Deal With EU’s Position On Beef With Growth Hormones
Ten years ago there was an ongoing dispute between trading partners relating to the EU’s ban on beef with growth hormones. The World Trade Organizations (WTO) had restrictions in place to deal with Europe’s position on hormones.
Due to the hormone restrictions the U.S. was edged out as the largest importer of beef. Australia, Uruguay and Argentina filled the gap and steadily replaced the U.S. As the largest provider of beef.
The Trump administration has been dealing with various trade wars, in China and France. President Trump said that he may impose taxes on all French wine exported to the U.S. France in turn threatened to impose taxes on the U.S. Tech industry.
Representative Lighthizer has been negotiating with China on ending the trade wars between the two countries. He said he’s hopeful that this beef deal will open up other difficult negotiations. The U.S. and the E.U. have other trade issues they are dealing with. One of the issues is whether to included agriculture in the current negotiations.