U.S. to impose tariffs on EU

Legislative Watch: U.S. imposing tariffs on EU; FMD vaccine back pushed; slaughter inspection rules finalized; Senate holds livestock hearing; meet the ’19 Meat Industry Hall of Fame class.

P. Scott Shearer, Vice President

October 4, 2019

3 Min Read
Illustration of U.S. and EU trade dispute, boxing gloves
Getty Images/iStockphoto

The United States will impose tariffs on $7.5 billion of European Union goods beginning on Oct. 18 as a result of the World Trade Organization ruling against the EU subsidies given to Airbus.

A 10% tariff will be applied to large civil aircraft and a 25% tariff on agricultural and other products. The agricultural products include pork, cheese, coffee, fruits, olives, Irish and Scotch whiskies, and wine. A majority of the tariffs will be applied to imports from France, Germany, Spain and United Kingdom. The United States has the authority to increase the tariffs or change the products affected.

U.S. Trade Representative Robert Lighthizer says, “For years, Europe has been providing massive subsidies to Airbus that have seriously injured the U.S. aerospace industry and our workers. Finally, after 15 years of litigation, the WTO has confirmed that the United States is entitled to impose countermeasures in response to the EU’s illegal subsidies.”

The United States and EU are expected to begin negotiations in an effort to resolve the issue.

The WTO is currently considering an EU case against the United States over its support of Boeing. A ruling is expected next year.

Need to establish FMD vaccine bank now
An adequately supplied vaccine bank is critical in efforts to control an outbreak of foot-and-mouth disease was the message at this week’s press conference by the National Pork Producers Council, National Milk Producers Federation, National Corn Growers Association and Iowa State University.

The group recognizes the efforts taken by the USDA to establish the bank. However, they urged the department to expedite the mandatory funding provided in the 2018 farm bill to establish a vaccine bank.

The NPPC says, “U.S. pork producers and other farmers are currently faced with a wide range of challenges, including export market uncertainties, flooding and other weather events. Unlike challenges beyond our control, a solution for FMD preparedness is in our grasp. We urge USDA to move as quickly as possible to establish the bank.”

The NCGA says, “A foreign animal disease outbreak would have an estimated $4 billion a year impact on corn farmers, which would be disastrous on top of current market conditions. In addition, an outbreak may also impact exports of animal ag products. On average, pork exports contribute 28 cents a bushel to the price of corn, so the control of infectious diseases via a vaccine bank is important not only to livestock producers but corn growers as well.”

New swine slaughter inspection program final
The final rule for the New Swine Slaughter Inspection System was published by the USDA’s Food Safety Inspection Service this week. The new program will go into effect on Dec. 2. Swine slaughter facilities will have until March 30 to inform FSIS if it plans to participate in the new program.

Senate livestock hearing held
The Senate Agriculture Committee held a hearing on the “Perspectives on the Livestock and Poultry Sectors.” The witnesses representing the pork, beef, lamb and turkey sectors emphasized the importance of passing the U.S.-Mexico Canada Agreement, completing a trade agreement with Japan, and the need to reauthorize Mandatory Price Reporting next year.

The NPPC says the U.S. pork industry needs removal of market uncertainty with China. The trade war with China is costing the pork industry $1 billion per year, and U.S. pork producers are losing $8 per head because of the Chinese tariffs.

Meat Industry Hall of Fame class of ’19 announced
The Meat Industry Hall of Fame announced the members of the Class of 2019. They are Morris Burger, Burgers Smokehouse; Chris Calkins, University of Nebraska-Lincoln; Kerri B. Gehring, Texas A&M/International HACCP Alliance; John Harris, Harris Farms; Robert Rebholtz Jr., Agri Beef; and R. Bruce Tompkin, ConAgra Refrigerated Prepared Foods.

The Meat Industry Hall of Fame established in 2008 recognizes individuals whose “vision, skill and dedication shaped and sustained the meat and poultry industry as the leading sector of North American food production.”

Source: P. Scott Shearer, who is solely responsible for the information provided, and wholly owns the information. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.

About the Author(s)

P. Scott Shearer

Vice President, Bockorny Group, Inc.

Scott Shearer is vice president of the Bockorny Group Inc., a leading bipartisan government affairs consulting firm in Washington, D.C. With more than 30 years experience in government and corporate relations in state and national arenas, he is recognized as a leader in agricultural trade issues, having served as co-chairman of the Agricultural Coalition for U.S.-China Trade and co-chairman of the Agricultural Coalition for Trade Promotion Authority. Scott was instrumental in the passage of China Permanent Normal Trade Relations and TPA. He is past chairman of the USDA-USTR Agricultural Technical Advisory Committee for Trade in Animals and Animal Products and was a member of the USAID Food Security Advisory Committee. Prior to joining the Bockorny Group, Scott served as director of national relations for Farmland Industries Inc., as well as USDA’s Deputy Assistant Secretary for Congressional Affairs (1993-96), serving as liaison for the Secretary of Agriculture and the USDA to Congress.

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