Minister Kitt Urges Compensation Instead of Sanctions In EU versus US/Canada Beef Hormone Case

Mr Tom Kitt, T.D., Minister for Labour, Trade and Consumer Affairs, referring today (Tuesday, 13 July, 1999) to the latest developments in the EU versus US/Canada dispute in relation to hormone treated beef, urged the US and Canada to consider the option of accepting compensation from the EU rather than imposing sanctions on EU exports. "Such compensation could take the form of increased access to the EU market for certain US and Canadian products," said Minister Kitt.

"The US originally assessed damages to their exports at $202m (£157m) and Canada calculated a figure of C$75m (£39m). These figures have now been significantly reduced and the WTO has ruled that the amounts should be $116.8m (£91m) and C$11.3m (£6m) respectively."

The Minister said that on-going discussions were taking place between the US and the EU and Canada and the EU to see if there could be a negotiated solution to the dispute involving compensation rather than sanctions.

"The US and Canada have excellent trading relations with the EU." said Mr Kitt. "This dispute should not be allowed to detract from the many benefits deriving from these good relationships. We should continue to work together to see if a settlement can be negotiated."

As Minister for Consumer Affairs, the Minister added that "the US and Canadian Authorities must appreciate that real consumer concerns throughout Europe continue to exist in relation to hormone treated beef."

Following the Arbitrator's report, the way is now open to the US and Canada to impose 100% tariffs on EU exports up to the level determined. When the original US amounts were announced, it was estimated that Irish food export products to the value of £10m could be covered with a possibility of a further £4.6m non-food exports. In the case of Canada, Irish exports of £0.2m were identified as possible targets. The US and Canadian administrations will be re-assessing the matter in the light of the Arbitrator's findings and have indicated their intention to issue revised lists of products in the near future.