A change in the list of products targeted for retaliation against the European Union's ban on U.S. beef is expected to move the EU toward resolving the trade dispute, the National Cattlemen's Beef Association said.
"The uncertainty created by carousel retaliation will help generate constant pressure on all offending parties to come into compliance with World Trade Organization rulings," said NCBA President George Hall, Mustang, OK. "Without periodic changes to the retaliation list, there is little, if any, internal political pressure to settle the trade dispute."
A new U.S. law mandates the office of the U.S. Trade Representative (USTR) to rotate the list of goods targeted with punitive tariffs for trade retaliation. USTR is expected to announce a new modified list of goods subject to tariffs.
Hall urged USTR to raise the tariffs above 100%, if necessary, to ensure a resolution to the dispute.
All but a handful of the products currently targeted are agriculture products, he said. Due to the EU farm subsidy program, which includes exports, subsidies could be increased to offset the amount of the tariff.
"This suggests initial tariffs at levels higher than 100% should be considered," Hall said. "And USTR should reserve the right to increase the tariff if the EU increases subsidies, in an attempt to neutralize the effects of it."
Hall also urged USTR to exempt the United Kingdom from retaliations. "NCBA strongly supports the continued exemption of products from the UK, as long as UK officials continue to voice oppositions to the ban within the EU political structure," he said.
Ultimately, the goal of the U.S. beef industry is a resolution to the trade dispute and access to the EU market for U.S. beef, Hall said.
"Retaliation does not benefit the beef industry and is viewed only as a means to an end--access," he said "NCBA strongly recommends importers and exporters of products from the EU who are concerned retaliations may impact their business urge the government in the exporting country to join the UK in opposing this illegal ban.
"The sooner compliance is achieved, the sooner the risk of retaliation is eliminated," he said.
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