Food Fight: The US Europe and Trade in Hormone-Treated Beef (Abridged) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Those familiar with the transatlantic trade relations are well aware of the long-standing US-EU beef trade dispute. This note traces the history of the quarrel, since the introduction of the use of growth-promoting hormones to raise beef cattle. In 1989, Europe has banned the use of these hormones. The ban covers all beef, including meat imported from the U.S., where growth hormones increase is widely used. In response, the United States imposed punitive tariffs on about $ 100 million of European food imports. In subsequent years, the rules have changed. New multilateral organizations and arrangements were put in place for the settlement of disputes, as the beef row, such as the SPS Agreement negotiated during the Uruguay Round of trade negotiations. Despite these changes, the story was much the same ten years later. Although the new World Trade Organization (WTO) ruled against the European ban, the EU continues to refuse beef raised with growth-promoting hormones. In 1999, again, the United States imposed punitive tariffs on about $ 117 million in food imported from Europe. The rules have changed, but in the end game remains almost the same. At the heart of the dispute were fundamental differences over trade in food. The United States claims that the European regulatory process were captured by policy. U.S. officials were disappointed that they saw as a political move to protect the EU market beef, citing scientific unsupported claims about the harmful health effects of hormones. The real problem, said Europe was the fact that the trading system was captured by the U.S. industry in the U.S. throughout the transatlantic relationship soured, surrender to the demands of corporate lobby beef. In addition, some consumer groups argue that it is not the role of trade lawyers and diplomats in the WTO decision-making related to health and safety. HKS Case Number 1677.3 "Hide
by Charan Devereaux, Robert Lawrence, Michael Watkins 27 pages. Publication Date: August 31, 2007. Prod. #: HKS434-PDF-ENG