WASHINGTON – President Donald Trump and the Office of the US Trade Representative reached a beef agreement with the European Union on Aug. 2. The deal is expected to increase the annual duty-free beef exports $270 million per year when it is in place.
The initial tariff rate quota (TRQ) for cattlemen will be 18,500 metric tons annually and approximately $220 million. During a 7-year span the TRQ plans to increase to 35,000 metric tons annually, valued at approximately $420 million. Currently the EU receives 13,000 metric tons at approximately $150 million annually.
“American ranchers produce the best beef in the world. Thanks to President Trump’s leadership, this new agreement ensures that American ranchers can sell more of that beef to Europe,” said US Trade Representative Robert Lighthizer.
Several industry groups who attended the ceremony at the White House praised Trump’s new deal with their European counterparts.
“The agreement sends a very positive signal to customers in Europe who see a bright future for US beef and to producers who are interested in expanding their non-hormone treated cattle (NHTC) business but have grown frustrated as they struggled to recover the additional production costs,” said USMEF President and CEO Dan Halstrom. "USMEF greatly appreciates the tireless efforts of the USTR and USDA to secure better access to this very high-value beef market."
The North American Meat Institute also applauded the decision and hoped it would lead to more talks with other countries.
“We look forward to continuing to work with the Administration to further reduce barriers impending and improve access for US meat and poultry exports in all foreign market,” said NAMI President and CEO Julia Anna Potts. “It is critical to continue ongoing trade negotiations with China to approve the United States-Mexico-Canada Agreement (USMCE) and to further talks with Japan.”
The agreement comes after another challenging year for the agriculture industry in the US with the ongoing trade dispute with China. Recently the Trump Administration released a $16 billion aid package to help farmers hurt by the ongoing tariffs from China and other countries.
President Trump also announced last week on Twitter that starting Sept. 1, the US will impose 10 percent tariffs on $300 billion in Chinese goods.