The European Union will remove on February 25 its import ban on U.S. beef and live hogs as a gesture demonstrating its good intention to help start bilateral free trade agreement (FTA) negotiations between the United States and the European Union. The beef will be allowed to be treated with lactic acid to reduce the level of possible pathogens. The EU approval of the use of lactic acid on U.S. beef becomes effective also on February 25. In addition, the EU step is viewed by many observers as a signal that the European Union is willing to have agriculture be a part of the FTA negotiations.
EU Trade Commissioner Karel De Gucht is due in Washington next week to further discuss and likely finalize a joint EU-U.S. report that is expected to recommend moving forward with free trade negotiations. De Gucht said last month these would be “difficult negotiations.” However, Europe and the United States both seek an economic boost after meager growth since the global crisis of 2008-2009.
Import tariffs between the European Union and the United States are already low and the real benefit would come from increased access to each other’s markets, as well as common regulations that would remove the high costs that smaller companies face if they want to export beyond their borders.
An FTA could increase the EU’s economic output by 65 billion euros ($88 billion) a year, a 0.5-percent increase in the EU’s domestic product, the European Commission calculated. No date has been set for the release of the joint EU-U.S. report on the viability of trade talks. These negotiations were initially expected to be launched by the end of last year.
