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U.S. and EU to Announce Beef Deal at White House on Friday

Published 02/08/2019, 05:15
Updated 02/08/2019, 06:09
© Reuters.  U.S. and EU to Announce Beef Deal at White House on Friday

(Bloomberg) -- U.S. President Donald Trump will formally announce a deal to open up the European Union to more beef exports after the bloc carved out quotas from other nations earlier this year, people familiar with the plans said.

U.S. Trade Representative Robert Lighthizer and the European ambassador to the United States on Friday will sign an agreement to increase the amount of American beef that can be sold in the EU market, the people said, speaking on condition of anonymity ahead of the announcement Friday.

Trump ’s daily itinerary for Friday includes “an announcement on EU Trade,” though the White House did not specify what the event was about. A White House spokesman and the USTR did not immediately respond to requests for comment late Thursday.

American farmers will be entitled to almost 80% -- or 35,000 metric tons -- of the annual EU quota on hormone-free beef over seven years, with an initial allocation of around 40%, European officials told reporters in June. The Trump administration in June secured more access to the European Union’s beef market after the bloc persuaded Australia, Argentina and Uruguay to cede chunks of the import quota.

According to people familiar with the announcement, Lighthizer called for the formal signing ceremony in an attempt to show progress on the bilateral trade agenda.

The quota was set a decade ago to settle a transatlantic dispute over an EU ban on meat from cattle that were given growth hormones. WTO rules required the volumes be made available to other nations that export beef, and Australia, Argentina and Uruguay gradually replaced the U.S. as the largest suppliers.

The announcement comes as Trump feuds with Europe over some trade issues, particularly with France. Trump has threatened to tariff French wine after that country imposed a tax on tech companies that will particularly impact American firms.

The U.S. and EU are working on a limited trade agreement that would cut industrial tariffs but have reached an impasse over whether to include agriculture in the negotiations.

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