U.S. Blocks Mart Look at Food Import Duties

The United States blocked a demand today by the European Economic Community for an official probe into U.S. duties on European food imports, imposed to retaliate for an EEC ban on U.S. hormone-treated meat.

The EEC, which charges that Washington’s measures violate international trade rules, made its bid at a regular two-day council meeting of the 96-nation General Agreement on Tariffs and Trade.

GATT sets global trade rules and is a forum for resolving trade disputes. It traditionally operates by consensus.

EEC delegate Tran Van-Thinh urged a quick investigation and warned of a further deterioration in the latest transatlantic trade dispute, a meeting source reported on condition of anonymity.

Many delegations backed the EEC’s criticism of the U.S. measures in a council debate on Wednesday.

But at today’s session, U.S. envoy Michael Samuels rejected the EEC request for an investigation by a panel of neutral GATT experts, saying it was premature.

D.C. Talks Next Week

Senior U.S. and EEC trade officials are scheduled to hold talks on the issue in Washington next week. The discussions could become more complicated if GATT were to begin an investigation, he said.

Canada, Chile, Brazil and Nicaragua also supported the EEC call for a panel.

The EEC’s import ban on hormone-treated meat went into effect on Jan. 1, affecting U.S. sales of beef and veal valued at more than $100 million. The EEC said meat treated with hormones could pose a health risk, which Washington disputes.

In response, Washington immediately slapped high duties on imports of European food products including boneless beef, ham and pork shoulders.

EEC foreign ministers approved a plan Jan. 23 to impose 100% duties on imports of U.S. walnuts and dried fruit. But the ministers delayed implementation to give more time for negotiations and said they will review the situation Feb. 20 before making a final decision on retaliation.