THE IMMINENT threat of heavy USA tariffs on many European Union
(EU) confectionery exports has been lifted, after Washington and
Brussels struck a preliminary deal over the long-running beef hormone
dispute. Retaliatory duties such as 100% duties on filled chocolate,
chewing gum, raspberry and lingonberry jams were to have been levied
this month (May), but have now been suspended, along with other EU food
products earmarked for new tariffs, such as fruit juices from Austria,
Cyprus, France and Poland. But no more: in what they called a
"pragmatic way forward", EU trade Commissioner Catherine
Ashton and US Trade Representative Ron Kirk have agreed to suspend these
additional duties in return for the EU allowing new duty-free access
annually for 20,000 tonnes of non-hormone treated American beef over
three years, and then 45,000 tonnes in a fourth year. Existing lower
level World Trade Organisation (WTO) sanctioned US duties (mainly on
meat products) will continue until a final solution to the row is
negotiated. The 100% duties would have threatened sales of European
confectionery classics such as Belgian pralines and Italian
limoncello-liquor chocolates, although UK-made filled chocolates would
have escaped the tariff, with Washington welcoming London's support
over the beef hormone issue.
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