WT/DS26/29  
 
17 April 2014  
(14-2411)  Page: 1/5  
  Original: English  
 
 EUROPEAN COMMUNITIES – MEASURES CONCERNING  
MEAT AND MEAT PRODUCTS (HORMONES) 
JOINT COMMUNICATION FROM THE EUROPE AN UNION AND THE UNITED STATES 
The following communication, dated 14 April 2014, from the delegations of the European Union 
and the United States to the Chairperson of th e Dispute Settlement Body, is circulated at the 
request of those delegations. 
 
_______________ 
  
The United States and the European Union previo usly notified the Dispute Settlement Body (DSB) 
of a Memorandum of Understanding (MOU) regarding the importation of beef from animals not treated with certain growth-promoting hormones and increased duties applied by the United States 
to certain products of the European Communities, agreed between the United States and the 
European Communities on 13 May 2009, in relation to the dispute European Communities –
Measures Concerning Meat and Meat Products (Hormones)  (DS26). The MOU was circulated in 
WT/DS26/28. Attached please find a revised MOU agreed between the United States and the 
European Union, dated 21 October 2013.    We would be grateful if this revised MOU could be circulated to the Dispute Settlement Body. 
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  ARTICLE I 
 
Purpose and Objectives 
 
 
With this Understanding, the United States and th e European Union intend to achieve the following 
objectives: 
 
1. To provide, in a first phase ("Phase 1"), for temporary and partial:  (a) expansion by the EU of market  access for High Quality Beef, and 
 
(b) reduction in the level of increased duties applied by the United States to certain EU products 
authorized by the WTO in 1999 (the "increased duties") 
 
in order for the Parties to gain experience in addi tional trade in High Quality Beef and facilitate a 
transition to long-term conditions; 
 
2. To provide the opportunity to move to a second phase ("Phase 2"), for:  (a) further expansion by the EU of market access for High Quality Beef, and 
 
(b) reduction to zero of the increased duties   
in order for the Parties to gain experience in additional expanded trade in High Quality Beef and 
facilitate a transition to long-term conditions; and  
3. To provide the further opportunity for entering into a third phase ("Phase 3") with regard to 
the WTO dispute between the Parties, EC – Measures Concerning Meat and Meat Products 
(Hormones) . 
 
 
ARTICLE II 
 
Core Obligations 
 1. At the beginning of Phase 1, the EU will establish an autonomous tariff rate quota for High 
Quality Beef of an annual quantity of 20 000 Metric Tonnes product weight, and for which 
the in-quota tariff rate is zero (0) %. 
 2. The EU will open the autonomous tariff rate quota referred to in paragraph 1 
by 3 August 2009.  
 3. With respect to the increased duties, the Un ited States will not add to scope, change the 
origin of products subject to increased duties or increase the level of such duties as in force 
as of 23 March 2009. 
 
4. Should the United States and the EU enter in to Phase 2, as described in Article I.2, and 
negotiated under Article IV.2: 
 (a) the EU will increase the quantity of the autonomous tariff rate quota referred to in 
paragraph 1 to 45 000 Metric Tonnes product weight, and 
 (b) the United States will suspend all increased duties imposed in connection with WTO dispute 
settlement proceedings in EC – Measures Concerning Meat and Meat Products (Hormones) . 
 5. Should the United States and the EU enter in to Phase 3, as described in Article I.3, and 
negotiated under Article IV.3: 
 (a) the EU will maintain the quantity of the autonomous tariff rate quota referred to in 
paragraph 1, at the level specified in paragraph 4(a), and 
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  (b) the United States will cease the increased duties imposed in connection with WTO dispute 
settlement proceedings in EC – Measures Concerning Meat and Meat Products (Hormones) . 
  
ARTICLE III 
 
Quota Management 
 
 1. The Parties agree that the tariff rate quota re ferred to in Article II will be administered by 
the Commission on a first-come, first-served basis. 
 
2. The Commission will implement and administer the tariff rate quota set out in this 
Understanding in accordance with Article XIII of the General Agreement on Tariffs and Trade 
(GATT) 1994, including its interpretative note s. The Commission will make every effort to 
administer the tariff rate quota referred to in Article II in a manner that allows importers to fully utilize it. 
 
 
ARTICLE IV 
 
Monitoring and Consultations 
  
1. The United States and the EU will: 
 (a) monitor and review the operation of this Understanding, and  
 
(b) upon the request of either Party, conduct additional bilateral consultations regarding the 
operation of this Understanding, including issues of quota management, not later than thirty (30) days following the receipt of the request in writing for consultations.  
 
2. The United States and the EU will, beginning not later than eighteen (18) months from the 
date specified in Article II.2, meet to review the operation of Phase 1 with a view to entering 
into Phase 2. 
 3. Should the United States and the EU enter in to Phase 2, the United States and the EU will, 
beginning not later than six (6) months from the date on which the EU implements the 
obligation set out in Article II.4(a), meet to re view the operation of Phase 2 with a view to 
entering into Phase 3. This review will no tably cover, inter alia, the following issues: 
 
(a) the duration of Phase 3, 
 (b) the status and effects of the Understanding relative to the Understanding on Rules and 
Procedures Governing the Settlement of Disputes (DSU), 
 (c) the consequences of non-compliance with the terms of the Understanding by either Party, 
and 
 (d) the status and disposition of any dispute settlement proceeding in EC – Measures 
Concerning Meat and Meat Products (Hormones) .  
 
4. After concluding the review referred to in para graph 3, if the Parties agree on conditions for 
entering into Phase 3, the Parties may, by applying the procedure set out in Article V.5, 
amend the Understanding in order to reflect the agreed conclusions of that review. Such an 
amendment will not alter the core obligations as referred to in Article II.5.  
 
5. As part of this review, the Parties have agreed to modify this Understanding on 
21 October 2013. 
  WT/DS26/29 
 
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  ARTICLE V 
 
Duration, Withdrawal and Amendment 
 
 
1. Phase 1 will have a duration of three (3) years from the date specified in Article II.2.  
2. Phase 2 will have a duration of three (3) years from the date the Parties entered into 
Phase 2.  
 3. Phase 3 shall begin upon a notification to the WTO Dispute Settlement Body to this effect.  
 
4. Either the United States or the EU may wi thdraw from this Understanding by providing 
written notice to the other Party. Should either Party provide such written notice, this 
Understanding shall expire six (6) months from the date such notice was provided. Should 
both Parties provide such written notice, this Agreement shall expire six (6) months from the earliest of the dates on which such notice was provided. During this six (6) month period, 
the core obligations, as defined in Article II, applicable at the time of the provision of the 
withdrawal notice, will be maintained by both Parties.  
 5. The United States and the EU may amend this Understanding by mutual agreement in 
writing.  
  
ARTICLE VI 
 
Definitions 
 
 For the purposes of this Understanding, "High Quality Beef" means:   
"Beef cuts obtained from carcasses of heifers and steers less than 30 months of age which have 
only been fed a diet, for at least the last 100 days  before slaughter, containing not less than 62 % 
of concentrates and/or feed grain co-products on a dietary dry matter basis that meet or exceed a 
metabolisable energy (ME) content greater than 12,26 megajoules (MJ) per one kilogram of dry 
matter. The heifers and steers fed this diet shall be fed, on average, not less than 1,4 % of live 
body weight per day on a dry matter basis. 
 
The carcass from which beef cuts are derived shal l be evaluated by an evaluator employed by the 
national government who bases the evaluation, and a resulting classification of the carcass, on a method approved by the national government. The national government evaluation method, and 
its classifications, must evaluate expected carcass quality using a combination of carcass maturity 
and palatability traits of the beef cuts. Such an ev aluation method of the carcass shall include, but 
not be limited to, an evaluation of the maturity characteristics of color and texture of the 
longissimus dorsi muscle and bone and cartilage ossification, as well as an evaluation of expected 
palatability traits including a combination of the discrete specifications of intramuscular fat and firmness of the longissimus dorsi muscle. 
 
The cuts shall be labeled in accordance with  Article 13 of Regulation (EC) No. 1760/2000. 
 The indication 'High Quality Beef' may be added to the information on the label."  
 
 
ARTICLE VII 
 
Reservation of Rights 
 
 
1. Neither Party will request the establishment of a panel under Article 21.5 of the DSU in EC – 
Measures Concerning Meat and Meat Products (Hormones)  during Phase 2 or Phase 3 of 
this Understanding.  
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  2. Neither this Understanding nor the Parties' taking of any of the steps contemplated by this 
Understanding prejudices the disagreement be tween the Parties regarding whether the DSB 
recommendations and rulings in EC – Measures Concerning Meat and Meat Products 
(Hormones)  have been implemented.  
 
3. Other than as specifically set forth herein, this Understanding is without prejudice to the 
rights and obligations of the United States and the EU under the WTO agreements.  
 
 
ARTICLE VIII 
 
Relation with WTO Rights 
  
1. The Parties envisage that Phase 3 would in volve termination of the authorization under 
Article 22.7 of the DSU, made by the DSB at  its meeting of July 26, 1999, and that no 
further action under the DSU with respect to DS26 would be taken.  
 
2. This Understanding and the step under the DSU referred to in paragraph 1 are without 
prejudice to any Party's right to initiate a new dispute under the DSU.  
 
 
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