The main problem in the dispute between the United States and the European Union in the beef hormone dispute is to determine the extent that a country can use health or other concerns to prohibit trade. The major aspect of this dilemma is that the United States and Europe have different regulations concerning beef. Although the beef meets American and International standards it doesn’t meet some European regulations.
Even though the case went to the WTO and there were recommendations made, the have problem between the United States and the European Union has not been solved. In the case study it informs us that after the ruling in the favor of removing the barrier due to a lack of scientific evidence that hormone treated beef is bad, that the European Union persisted in the ban of all hormone treated beef (Moss 2002). In retaliation the United States placed tariffs on a mixture European Union goods; however, though the both the tariffs and beef restrictions remain, the parties are in negotiations (Moss 2002). Thus, there are a few different outcomes that may eventually take place, the ban on beef remains in place, the ban on beef is taken away in response to punitive tariffs, or the two parties come to an understanding and make compromises.
Because the United States has performed decades of research, they feel that the hormone-treated beef is perfectly safe to the end consumers. Research has shown that the amount of hormones in the treated beef isn’t significantly above the hormone levels found in naturally raised beef (Moss 2002). Thus, by taking the case to the WTO has tried to ensure that the European Union is not creating a non-tariff barrier to trade. Even though there are other tariffs placed on the European Union, they don’t seem to mind the higher costs. One measure the United States could take next is to increase the punitive tariffs higher until Europe drops its ban, thus, trying to force Europe into accepting its imports. While America could...
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