The United States will be able to nearly triple its annual duty-free exports of beef to the European Union (EU) over the next seven years under a new agreement signed today at the White House.
American ranchers will be guaranteed a bigger share of Europe’s beef market, with annual duty-free exports expected to grow from $150 million to $420 million when the agreement is fully implemented.
“American ranchers produce the best beef in the world. Thanks to President Trump’s leadership, this new agreement ensures that American ranchers can sell more of that beef to Europe,” said U.S. Trade Representative Robert Lighthizer, who signed the agreement with the Honorable Jani Raappana of Finland, representing the Presidency of the EU, and Ambassador Stavros Lambrinidis of the Delegation of the EU.
The new agreement negotiated by the Trump Administration establishes a duty-free tariff rate quota (TRQ) exclusively for the United States. Under the agreement, American ranchers will have an initial TRQ of 18,500 metric tons annually, valued at approximately $220 million. Over seven years, the TRQ will grow to 35,000 metric tons annually, valued at approximately $420 million.
Under the current agreement, U.S. duty-free beef exports to the EU are only approximately 13,000 metric tons annually, valued at approximately $150 million, and risked declines going forward.
In 2016, the National Cattlemen’s Beef Association, U.S. Meat Export Federation, and the North American Meat Institute requested the U.S. Trade Representative to take tariff action under Section 301 of the Trade Act of 1974 to enforce the World Trade Organization dispute finding in favor of the United States against the EU’s ban on the use of hormones in cattle production. USTR held a public hearing on February 15, 2017.
Negotiations resulted in a new agreement, which was approved by the European Council on July 15, 2019. It will go into effect following the European Parliament’s approval, which is expected this fall. With the EU providing a country specific duty-free quota for U.S. beef, the United States has agreed as a part of the agreement signed today to conclude the proceedings under Section 301 of the Trade Act of 1974 initiated in December 2016.
Fischer Statement on U.S.-EU Beef Trade Agreement
U.S. Senator Deb Fischer (R-Neb.), a cattle-rancher and a member of the Senate Agriculture Committee, released the following statement after President Donald Trump announced a beef trade deal between the U.S. and the European Union (EU):
“The Beef State welcomes the news of this new trade agreement between the U.S. and the EU. Nebraskans produce some of the most high-quality and delicious beef there is and this deal marks another opportunity for our families, communities, and businesses. I look forward to continuing to work with this administration on opening more markets for our state’s hardworking ag producers.”
The trade deal announced today will allow the U.S. to export 35,000 tons of hormone-free beef to the EU per year.
Ricketts Praises President Trump’s EU Agreement to Increase Beef Exports
Today, Governor Pete Ricketts issued a statement following news that President Donald J. Trump signed a new deal with the European Union (EU), which will increase beef exports from the United States to the EU.
“For years, we have been working to increase the amount of beef Nebraska exports to the European Union,” said Governor Ricketts. “This agreement from President Trump presents a major growth opportunity for our state, and will help Nebraska build on our successes from the last 15 years. As we seize this great opportunity, I look forward to taking our message about Nebraska beef on the road during my trade mission to Germany this November.”
In 2005, only five percent of the U.S. beef entering the EU came from Nebraska. By, 2018, Nebraska’s share rose to 53%, and was valued at $124.3 million.
President Trump’s new deal will allow the U.S. to almost triple the amount of beef it is currently exporting. As the nation’s leader in commercial red meat production and a top three exporter of US beef, Nebraska agriculture stands to benefit greatly from the expansion of this marketplace.
In 2015, Governor Ricketts led a trade mission to the EU to promote Nebraska products.
Statement by Steve Nelson, President, Regarding European Union Deal on U.S. Beef
“President Trump’s announcement that the European Union will grant increased access to the European markets for U.S. beef is great news for Nebraska beef producers. Quality beef is in high demand in the European Union, particularly in countries like Germany and Italy. Today’s action will only boost opportunities for Nebraska beef producers to fill these markets moving forward.”
“Under the deal, U.S. farmers will ultimately be entitled to nearly 80 percent of the European Union’s quota on hormone-free beef over the next seven years. The quota is the result of a long-standing dispute between the two countries that led to several dispute settlement proceedings with the World Trade Organization that stem back to the European Union’s decades old decision to ban hormone-treated meat, despite overwhelming scientific evidence the product is safe for consumers.”
“Hopefully, today’s deal is a positive step in building relations to secure a bilateral trade deal with the European Union to open even greater access for U.S. agriculture products. Nebraska shipments of beef and beef products to the European Union ranged from $120-$143 million over the last five years. That’s between 40-50 percent of total U.S. shipments. With the agriculture economy struggling and the recent difficulties in trade negotiations with China, it’s critical we continue to grow agriculture market opportunities where we can.”
Secretary Perdue Statement on U.S. and E.U. Beef Agreement
U.S. Secretary of Agriculture Sonny Perdue issued the following statement after an agreement was signed between the United States and the European Union regarding beef trade between the two nations:
“Getting more US beef into the EU market is yet another example of President Trump expanding markets around the globe for our agriculture producers. EU consumers desire high quality products, and I have no doubt that when given the opportunity to purchase U.S. products we will see more Europeans choose to buy American. America’s farmers and ranchers are the most productive on earth and I thank President Trump and Ambassador Lighthizer for their continued work to promote the bounty of the American harvest across the world.”
USMEF Statement on Signing of U.S.-EU Agreement on Access for U.S. Beef
Today at the White House, U.S. Trade Representative Robert Lighthizer signed an agreement granting the United States a country-specific share of the European Union’s duty-free high-quality beef quota. U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom, who participated in the White House ceremony, issued the following statement:
This agreement provides more reliable and consistent access to the EU market and will be a tremendous boost for the U.S. beef industry. The agreement sends a very positive signal to customers in Europe who see a bright future for U.S. beef and to producers who are interested in expanding their non-hormone treated cattle (NHTC) business but have grown frustrated as they struggled to recover the additional production costs. USMEF greatly appreciates the tireless efforts of USTR and USDA to secure better access to this very high-value beef market.