2. EU Hormone Beef Case Lee June Won Choi Woong Bi Febeline Setiabudi Candri Rahma M.

3. Contents PART 1 : Definition of SPS PART 2 : Dispute between EU and USA PART 3 : Summary

4. PART 1 Definition of SPS ○ What is the SPS agreement? ○The SPS Agreement prescribes rules requiring a scientific basis for measures that restrict imports on the basis of health or safety concerns.

5. PART 1 Definition of SPS ○ Objective of SPS ① Recognize the sovereign right of WTO Members to provide the level of health protection ② Ensure that SPS requirements do not represent unnecessary, arbitrary, scientifically unjustifiable, or disguised restrictions on international trade

6. PART 1 Definition of SPS ○ Important things of SPS ○ The SPS agreement recognizes the right of countries to maintain standards that are stricter than international standards. ○ Stricter standards should be justified by science or by a nondiscriminatory lower level of acceptable risk that does not selectively target imports.

7. Contents PART 1 : Definition of SPS PART 2 : Dispute between EU and USA PART 3 : Summary

8. PART 2 Dispute between EU and USA Dispute between EU and USA 1950 Hormone started used to cattle. 1977 Hormone used impact has been found. EU recognize the signs of the premature onset of puberty in northern Italian schoolchildren. 1980 EU started to ban hormone-treated meat imports from US.

9. PART 2 Dispute between EU and USA Dispute between EU and USA 1989 EU fully implemented its ban on imports of meat and meat products from animals treated with growth promotants. 1995 The GATT Uruguay Round Agreement, including the Sanitary and Phytosanitary (SPS) Agreement.

10. PART 2 Dispute between EU and USA Dispute between EU and USA 1996 US proposed a WTO dispute settlement panel case against EU. 1997 WTO released report agreeing with US that the ban of EU violated several provisions of the SPS Agreement, because EU didn’t provide enough evidence.

11. PART 2 Dispute between EU and USA Dispute between EU and USA Summary of Key Panel (1997) SPS Article 3.1 (international standards): be based on international standards, guidelines or recommendations. SPS Article 5.1 (risk assessment): be based on a risk assessment and take into account risk assessment techniques developed by the relevant international organizations. SPS Article 5.5 (prohibition on discrimination and disguise restriction on international trade): avoid arbitrary or unjustifiable distinctions that result in discrimination or a disguised restriction on international trade.

12. PART 2 Dispute between EU and USA Dispute between EU and USA 1999 → EU offered the first in its series of scientific reviews 2000 → EU offered the second in its series of scientific reviews 2002 → EU offered the third in its series of scientific reviews 2003 The EU Commission issues new law permanently bans the use of estradiol and five other hormones.

13. PART 2 Dispute between EU and USA Dispute between EU and USA 2004-2005 EU initiates a new dispute over US and Canada. 2008 The panel announces that it founds fault with all 3 parties (EU, US, Canada) 2009 -> US and EU sign the MOU (Phase 1) 2012 -> EU issued new regulation (Phase 2)

14. PART 2 Dispute between EU and USA Dispute between EU and USA

15. Contents PART 1 : Definition of SPS PART 2 : Dispute between EU and USA PART 3 : Summary

16. PART 3 Summary Summary ○ Why this topic is dispute? ○ EU and USA are opposite position. ○ EU : They insist that hormone beef is very harmful food. Because the beef causes Creutzfel-jakob disease…etc. So they must not import the hormone beef. ○ USA : They insist that there hormone beef not violated the SPS agreement. So they said EU’s measures unfair reaction.

17. PART 3 Summary Summary EU-Reported Beef Imports from the United States, 1999-2008 (beef imports reported under trade categories HTS 0201 and 0202)

18. PART 3 Summary Summary Non-Hormone-Treated Cattle (NHTC) Program The NHTC program is a Quality Systems Assessment (QSA) program, whereby the USDA certifies the processes and procedures in place for a specific marketing claim. The program has three principal components: Cattle are to be grown in approved farms/feedlots and delivered to the laughter establishment with a copy of a signed producer affidavit certifying that the animals have never been treated with hormonal growth promoters. Non-treated cattle and beef are segregated at the slaughter establishment and handled in a fashion that ensures that they are not commingled with other animals or meat. Tissue samples from non-hormone treated cattle are collected at slaughter and analyzed by accredited independent laboratories for residual levels of restricted compounds.

19. PART 3 Summary Summary. U.S. Imports, Selected Products and Countries, 1996-2008 (products subject to higher U.S. tariffs under the U.S.-EU beef hormone dispute)

20. PART 3 Summary Summary Content of MOU Phase 1 (2009) : Europe Commission adopted regulations opening a tariff quota for 20,000 metric tons imports of high quality beefs (HQB). Phase 2 (2012) : EU issued regulations increasing the HQB quota to 48,200 metric tons. **The Committee of Agriculture and Rural Development proposes to extend the period for Phase 2 until 31 July 2015 before moving to Phase 3.

21. Q & A

22. THANK YOU