The vote passed with 457 in favor, 140 against and 71 absent.
According to some experts, this new trade agreement will enable the U.S. to nearly triple the amount of beef currently exported to the EU over the next seven years. Currently, the U.S. exports approximately 11,500 metric tons of non-hormone-treated beef to the EU each year under a 20% tariff, which is valued at roughly $150 million. The increase amount will begin in 2020 with a quota of 18,500 metric tons of duty-free beef annually, valued at close to $220 million. Over a period of seven years, that quota will grow to 35,000 metric tons annually, which will bring the value up to approximately $420 million.
U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom issued the following statement: “Approval by the European Parliament keeps this agreement on track for implementation in early 2020, which is outstanding news for the U.S. beef industry and our customers in Europe. Lack of capacity in the duty-free quota has been a source of frustration on both sides of the Atlantic, and a U.S.-specific share of the quota will help ensure that U.S. beef can enter the European market 52 weeks per year, without delay or interruption.
“The EU is one of the highest-value destinations in the world for U.S. beef, and consistent access will not only benefit U.S. producers and exporters but also European importers and their clientele. USMEF thanks USTR and USDA for negotiating this agreement and securing its approval, which will bolster the U.S. industry’s efforts to expand the European customer base for U.S. beef.”
The final step requires the individual countries in the EU to give their approval.
Beyond the meat counter
The newly approved trade agreement is not solely concerned with increasing the U.S. beef quota for EU markets. Lawmakers on both sides of the Atlantic are in hopes that this trade agreement will help alleviate some of the pressure recently applied by the Trump administration in the form of tariffs imposed on metal imports and the threat of raising tariffs on European cars and car parts.
“The message of this agreement is clear: We would like to de-escalate trade tensions with the U.S., but we want to see the same efforts of de-escalation on the other side of the Atlantic,” Bernd Lange, the head of the European Parliament’s trade committee, said in a statement. Other recent and ongoing U.S.-EU trade disputes include cases brought before the World Trade Organization against Airbus and Boeing which have so far resulted in U.S. tariffs on $7.5 billion of European imports. 
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Carrie Veselka
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- Progressive Cattle
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