Saturday

27th Aug 2016

EU in new trade case against US and Canada

The EU on Monday (8 November) announced the launching of WTO action against the US and Canada.

Both countries are refusing to lift trade sanctions on the EU amounting to 116 million US dollars per year plus 11 million Canadian dollars per year, which were imposed after the EU slapped a ban on importing hormone beef.

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

  • US beef causing trouble (Photo: EUobserver)

The World Trade Organisation (WTO) deemed the EU ban illegal because it was not based on proper scientific research.

The EU consequently conducted an independent scientific research project and changed its laws to comply with the WTO ruling.

But the US and Canada have still not lifted their sanctions, prompting Monday's action.

Sanctions must go

"The EU ban on certain growth-promoting hormones is now in full respect of our international obligations", said EU trade commissioner Pascal Lamy.

"There is no reason why European companies should continue to be targeted by sanctions when they export to Canada and the United States", he continued.

The complaint is the first step in the procedure, which can be quite lengthy.

The EU has asked for consultations with the US and Canada. If no progress is made within 60 days, the case goes to a WTO panel, where the procedure lasts another eight to nine months.

"Obviously we could save a lot of time and effort if the US and Canada just lifted the sanctions", said Mr Lamy's spokeswomen.

Although over half of disputes are settled at the consultation phase, without going to the panel, the spokeswoman said it was "very difficult to say" what would happen in this case. The EU expects a response in the coming days, she added.

"The message we are sending is loud and clear ... the sanctions must go", she told reporters.

The EU's announcement follows recent transatlantic squabbles over government aid to aerospace companies Boeing and Airbus.

News in Brief

  1. Hungary plans to reinforce border fence against migrants
  2. France's highest court suspends burkini ban
  3. Greeks paid €1bn more in taxes in June
  4. Greek minister denounces EU letter on former statistics chief
  5. Turks seeking asylum in Greece may cause diplomatic row
  6. Merkel becomes digital resident of Estonia
  7. Report: VW will compensate US dealers with €1bln
  8. EU mulls making Google pay news media for content

Stakeholders' Highlights

  1. GoogleBrussels - home of beer, fries, chocolate and Google’s Public Policy Team - follow @GoogleBrussels
  2. HuaweiSeeds for the Future Programme to Bring Students from 50 countries to China for Much-Needed ICT Training
  3. EFASpain is not a democratic state. EFA expresses its solidarity to Arnaldo Otegi and EH Bildu
  4. UNICEFBoko Haram Violence in Lake Chad Region Leaves Children Displaced and Trapped
  5. HuaweiMaking Cities Smarter and Safer
  6. GoogleHow Google Makes Connections More Secure For Users
  7. EGBAThe EU Court of Justice Confirms the Application of Proportionality in Assessing Gambling Laws
  8. World VisionThe EU and Member States Must Not Use Overseas Aid for Promoting EU Interests
  9. Dialogue PlatformInterview: "There is a witch hunt against the Gulen Movement in Turkey"
  10. ACCAACCA Calls for ‘Future Looking’ Integrated Reporting Culture With IIRC and IAAER
  11. EURidNominate Your Favourite .eu or .ею Website for the .EU Web Awards 2016 Today!
  12. Dialogue PlatformAn Interview on Gulen Movement & Recent Coup Attempt in Turkey