“This is a tremendous victory for American farmers, ranchers, and, of course, European consumers.”
That’s President Donald Trump on Friday from the White House announcing a new deal that will allow the United States to nearly triple its annual duty-free exports of beef to the European Union (EU) over the next seven years.
“In year one, duty-free American beef exports to the EU will increase by 46 percent. Over 7 years, they will increase by another 90 percent.”
President and CEO of the U.S. Meat Export Federation Dan Halstrom thanked the Trump administration and the U.S. Trade Representative’s office for their diligent efforts to get a deal done. He explains why the previous arrangement was so hard for U.S. beef producers.
“The issue we had with the EU quota up until now is that since it’s applied quarterly, the quota has been exhausted within the first few weeks of the quarter because our competition around the world was getting in on that quota, which makes the supply chain, the ability of our exporters to ship reliably every week, very much in question. This new deal is a U. S. only quota, so this will make the supply chain much smoother, and from a customer basis, allow us to get deeper penetration into the market.”
Under that current agreement, U.S. duty-free beef exports to the EU are only approximately 13,000 metric tons annually, valued at approximately $150 million, and risked declines going forward. U.S. Trade Representative Robert Lighthizer says that initial estimates show that U.S. beef will grow by over $270 million a year once the new agreement is fully implemented.