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In mid-March 2019, the EU and U.S. governments
reached a deal in principle to provide exclusive
rights to U.S. beef producers to export up to
35,000 metric tons of beef certified as being
without growth-promoting hormones. While this
agreement still needs to get approved by each of the
nations within the European Union, historical trade
data (shown in this figure) suggests that barriers to
U.S. beef imports were binding. Removing these
barriers could more-than-double!
A secondary, but perhaps more interesting
consequence of this new agreement, could be the
additional market power that the United States
beef exporters could gain within the European
Union. e figure below shows total beef imports
into the EU. Since 2008, the total imports have
remained relatively constant (even more so since
2013). is suggests that if U.S. beef exporters
increase their sales in the EU and lile else changes
with European beef production and consumption
behaviors, then U.S. beef would potentially crowd
out beef imports from its major competitors.
Is your product headed to the EU? Have you been affected by
the disputed EU–US MOU? Do you see the EU market as
a growing or potential new outlet for your products?
