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Europe Ready for Beef Deal That America May Not Care About

Ags - Meat/Dairy 192 China 2531 Consumer Staples 590 European Union 630 Tariffs 1614 U.S. 4481

The European Commission has received approval from EU leaders to review the system of tariff-rate quotas to be applied to imports of hormone-free beef, Inside Trade reports. That may prove useful in improving the share of supplies coming from the U.S. as part of wider trade negotiations. While the process launched by President Trump and President Juncker will focus on non-tariff barriers it is increasingly likely that tariffs and quotas may be reviewed to, as outlined in Panjiva research of October 18.

Panjiva analysis of EU data beef imports shows that the U.S. accounted for just 9.0% of 1.66 billion euros imported in the 12 months to June 30, down from 10.6% in 2014. The EU represented just 3.3% of total U.S. exports in the 12 months to August 31. Even a doubling of shipments to the EU would only have a marginal impact on American farmers.

Indeed, U.S. beef exports have climbed 19.9% on a year earlier to reach $7.1 billion including a new record in the month of August. The bigger issue is relations with China, which accounted for 13.7% of exports and where shipments have fallen by 26.8% sequentially in the past three months due to the imposition of tariffs in retaliation for America’s section 232 duties.

LESS MEAT FROM AMERICAN BULLS IN CHINA’S SHOPS

Chart compares U.S. seaborne imports by Magneti-Marelli and Calsonic Kansei.   Source: Panjiva

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