CONTACT:        Tanya Augustson                       (202) 347-0228         taugustson@beef.org

                        Karen Batra                               (202) 347-0228               kbatra@beef.org

U.S. Cattlemen Challenge European Union to ‘Saddle Up’ in Hong Kong

Washington, D.C. (December 16, 2005) – The National Cattlemen’s Beef Association (NCBA) is in Hong Kong this week, urging negotiators from World Trade Organization (WTO) member countries to support the U.S. Proposal for Global Agricultural Trade Reform.

“It is imperative that we come to an agreement regarding market access issues for agriculture, and this week European Union negotiators seem determined to sidetrack the media with every possible distraction known to man,” says NCBA Chief Economist Gregg Doud, who attending the Ministerial meeting this week.

“The real controversy here is that the United States, which already has the most open beef market in the world, has put a bold proposal on the table,” continues Doud, “but the European Union seems to be clinging to an old-school mentality that supports high tariffs and barriers to entry. We are very disappointed that they are making zero progress in this area.”

Currently, the European Union’s (EU) bound tariff on beef imports is at 57 percent. Unlike free trade agreement negotiations, where tariff rates would be reduced to zero over time, these multilateral negotiations focus on reducing WTO bound tariffs, which are the maximum tariff rates that WTO members may impose on imports. The average global tariff on exported beef and beef products is at 85 percent. The United States’ October proposal would potentially reduce bound tariffs to around 7.5 to 12.5 percent.

“U.S. cattle producers, who receive zero domestic subsidies and support low tariffs world-wide, simply want a level global playing field for our products,” says Texas cattleman and NCBA President Jim McAdams. “That’s the whole point of our participation in these international trade talks. We believe in the WTO negotiations because we envision a future where our high-quality U.S. beef exports are not discouraged and punished by unreasonable trade barriers.”

This week, United States Trade Representative Rob Portman and members of the U.S. negotiating team in Hong Kong are stressing that improved agricultural market access is a top priority.

“NCBA supports efforts made by U.S. negotiators to get tariffs down to a level where the world’s consumers can enjoy the most competitively priced, high-quality beef in the world,” says Doud. “These WTO negotiations are the best means we have to do this, yet we are now being held up by one of the most subsidized and protected beef-producing regions of the world – the European Union.”

“Cattlemen from across the United States want the EU to saddle up and bring the big questions about agricultural market access into the arena,” says McAdams. “Instead of getting stuck in the mud on peripheral issues, let’s talk about the big picture. Ninety percent of the benefits from a Doha Round agreement would come from a decrease in agricultural trade barriers, yet the EU remains unmoved.”

“The European Union is becoming increasingly isolated in its effort to make sure nothing substantive happens in Hong Kong on market access,” says Doud. “This is a once-every-twenty-years opportunity, and we cannot afford for it be squandered. Our message to the negotiating teams is simple: the future success of our industry depends upon fair and transparent expansion of access to consumers around the globe.”

*For more information on the U.S. Proposal for WTO Agriculture Negotiations go to www.ustr.gov.

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The National Cattlemen’s Beef Association (NCBA) is the largest organization representing America’s cattle industry.  Initiated in 1898, NCBA is the industry leader in education, influencing public policy to improve producer profitability and in preserving the industry’s heritage and future.  Efforts are made possible through membership contributions. To join, contact NCBA at 1-866-BEEF-USA or membership@beef.org.