The likelihood of a new trade war between the US and the EU increased yesterday after a deadline passed after which Europe was due to allow imports of hormone-treated US beef.
However, European Commission officials said there could be no reversal of the European position as new scientific evidence confirmed a health risk from the hormones with which 90 per cent of US beef is treated.
The US has accused the EU of concocting scientific grounds for its ban after it was ordered by the World Trade Organisation (WTO) to resume normal trade. However, the EU Commissioner for consumer health, Ms Emma Bonino, has accused the US of acting irresponsibly by ignoring the evidence that US-approved growth-promoting hormones could trigger cancer, particularly in young people.
The EU Commissioner for foreign trade, Sir Leon Brittan, continued world trade talks in Tokyo yesterday with the US, Japan and Canada. He said he was assessing the scientific evidence and wanted to offer the US compensation for lost trade rather than open the European market to potentially hazardous beef.
However, Washington, which has lost an annual £300 million worth of beef trade since the ban began in 1989, is planning to penalise £550 million worth of EU exports.
Under WTO rules, the US has three weeks to decide on trade retaliation but continuing negotiations are expected to push sanctions back until mid-July.
--(Additional reporting: PA)
