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President Signs Trade Retaliation Provision Into Law

Thursday, May 18, 2000

Washington, DC - The American Meat Institute (AMI) hailed President Clinton’s signing of new legislation that will mandate rotating retaliation against countries that refuse to comply with international trade rules. AMI’s President J. Patrick Boyle today attended a special signing ceremony at the White House Rose Garden where President Clinton signed the bill into law after it passed by a wide margin in both houses of Congress.

The Africa and Caribbean Basin Growth and Opportunity Act includes the “carousel” retaliation provision that AMI introduced and has advocated for more than a year. The provision requires the Administration to rotate the list of imported items that face prohibitive duties (currently 100 percent) as a result of the European Union’s (EU) failure to comply with World Trade Organization (WTO) findings in the beef hormone case.

“Mandatory carousel retaliation is an important tool for resolving trade disputes,” said AMI President J. Patrick Boyle. “EU intransigence in the beef hormone case suggests static retaliation is not effective. Carousel retaliation will, over time, ensure that all EU-member countries pay the price for Europe’s refusal to abide by the WTO ruling.”

AMI has long urged the carousel approach to increase pressure on the EU to comply with WTO rules. Despite clear WTO rulings that EU restrictions on imports of hormone-treated beef and bananas are illegal, the EU has refused to rescind or modify these policies. As a result of the EU’s refusal to comply with a WTO ruling against its ban on hormone-treated beef, the U.S. last year imposed punitive duties on $117 million of EU exports. Under the legislation, USTR will be required to select a revised list of products targeting new EU countries for retaliatory tariffs affecting $117 million in U.S. imports of EU products.

The first rotation of the retaliation lists must occur within 30 days of enactment of the law. Subsequent rotations will take place every six months.

AMI represents the interests of packers and processors of beef, pork, lamb, veal and turkey products and their suppliers throughout North America. Headquartered in Washington, DC, the Institute provides legislative, regulatory and public relations services, conducts scientific and economic research, offers marketing and technical assistance and sponsors education programs.

For more information contact:
Janet Riley
Vice President, Public Affairs
James Ratchford
Manager, Public Affairs

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