WORLD TRADE  
ORGANIZATION  WT/DS26/28 
30 September 2009 
 
 (09-4584) 
 Original:   English 
  
 
EUROPEAN COMMUNITIES – MEASURES CONCERNING 
MEAT AND MEAT PRODUCTS (HORMONES) 
 
Joint Communication from the European  Communities and the United States
 
 
 
 The following communication, dated 25 September 2009, from the delegations of the European Communities and the United States to the Chairperson of the Dispute Settlement Body, is 
circulated at the request of those delegations.  
_______________ 
 
  Please find attached a Memorandum of Understa nding regarding the importation of beef from 
animals not treated with certain growth-promoti ng 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). 
  We would be grateful if this Memorandum of  Understanding could be circulated to the 
Dispute Settlement Body.  
 
  For the European Communities:  
 
    Eckart Guth 
Ambassador 
Permanent Representative of the European Commission   
 For the United States:  
 
    David Shark 
Chargé d'Affaires, a.i. 
Permanent Mission of the United States of America 
 
 
  
 
 WT/DS26/28 
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MEMORANDUM OF UNDERSTANDING BETWEEN THE UNITED STATES OF AMERICA AND THE 
EUROPEAN COMMISSION  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   
  The United States of America ("United St ates") and the European Commission ("the 
Commission") have reached an understanding, as documented in this Memo randum of Understanding 
("Understanding"), regarding the importation of Hi gh Quality Beef into the European Communities 
("EC") and the level of increased duties applied by the United States to certain EC products in 
connection with the World Trade Organization ("WTO") dispute EC – Measures Concerning Meat 
and Meat Products (Hormones) (DS 26).   
 
 The United States and the Commission commit to the terms and obligations set forth in the 
attached Annex.  Following implementation of the ob ligations set forth in Article II.1 and Article II.3 
of the Annex, the United States and the EC will not ify this Understanding to the Dispute Settlement 
Body ("DSB") . 
 
 
 ____________________________________ ____________________________________ FOR THE GOVERNMENT OF THE  FOR THE EUROPEAN COMMISSION UNITED STATES OF AMERICA         
 
  WT/DS26/28 
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ANNEX 
 
 
ARTICLE I 
 
PURPOSE AND OBJECTIVES  
 
With this Understanding, the United States and the EC intend to achieve the following objectives: 
 
1. To provide, in a first phase ("Phase 1"), for temporary and partial: 
(a) Expansion by the EC of market access for High Quality Beef and 
(b) Reduction in the level of increased duties a pplied by the United States to certain EC 
products authorized by the WTO in 1999 (the "increased duties") 
in order for the Parties to gain experience in additional 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 EC 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 in to a third phase ("Phase 3") with regard to 
the WTO dispute between the Parties, EC – Measures Concerning Meat and Meat Products 
(Hormones).  
 
 
A
RTICLE II 
 
CORE OBLIGATIONS  
 
1. At the beginning of Phase 1, the EC will establish an autonomous tariff rate quota for High 
Quality Beef of an annual quantity of 20,000 Metr ic Tonnes product weight, and for which the in-
quota tariff rate is zero (0) per cent. 
2. The EC will open the autonomous tariff rate  quota referred to in paragraph 1 by 
3 August 2009.  
3. With respect to the increased du ties, the United States will not add to scope, change the origin 
of products subject to increased duties or increa se the level of such duties as in force as of 
23 March 2009. 
4. Should the United States and the EC enter into  Phase 2, as described in Article I.2, and 
negotiated under Article IV.2: WT/DS26/28 
Page 4  
 
   
(a) The EC will increase the quantity of the au tonomous 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 EC enter into  Phase 3, as described in Article I.3, and 
negotiated under Article IV.3: 
(a) The EC will maintain the quantity of the autonomous tariff rate quota referred to in 
paragraph 1, at the level speci fied in paragraph 4(a) and 
(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). 
 
 
A
RTICLE III 
 
QUOTA MANAGEMENT  
  1. The Parties agree that the tariff rate quota referred  to in Article II will be administered by the 
Commission in accordance with the ru les applied for similar import tariff rate quotas for agricultural 
products managed by a system of import licenses . 
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 notes, and the Import Licensing Agreement.  The Commission will make every effort to administer th e tariff rate quota referred to in Article II in a 
manner that allows importers to fully utilize it. 
 
 
A
RTICLE IV 
 
MONITORING AND CONSULTATIONS  
 
1. The United States and the EC will:  
(a) Monitor and review the operation of this Understanding and,  
(b) Upon the request of either Party, conduct additional bilateral c onsultations regarding 
the operation of this Understanding, includi ng 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 EC will, beginning not later than eighteen (18) months from the 
date specified in Article II.2, meet to review th e operation of Phase 1 with a view to entering into 
Phase 2.  WT/DS26/28 
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  3. Should the United States and the EC enter into  Phase 2, the United States and the EC will, 
beginning not later than six (6) months from the date on which the EC implements the obligation set 
out in Article II.4(a), meet to review the operation of Phase 2 with a view to entering into Phase 3.  This review will notably 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 Settle ment of Disputes (DSU), 
(c) The consequences of non-compliance with the te rms 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) , including the continuing non-disclosure of 
any interim report as referred to in Article VII.2.  
4. After concluding the review re ferred to in paragraph 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 conclusi ons of that review.  Such an amendment will not 
alter the core obligations as re ferred to in Article II.5.  
 
 
A
RTICLE 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. Should the Parties enter into Phase 2, Phase 2 will have a duration of one (1) year from the 
date the Parties enter into Phase 2. 
3. If no agreement as referred to in Article IV .4 can be reached by the end of Phase 2, the 
Understanding will be considered terminated, unless th e Parties agree otherwise.  During a period of 
six (6) months following such termination of the Understanding, the core obligations as defined in 
Article II.4 will be maintained by both Parties.  
4. Either the United States or the EC may w ithdraw from this Understanding by providing 
written notice to the other Party.  Should either Pa rty provide such written no tice, this Understanding 
shall expire six (6) months from the date such no tice 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 peri od, the core obligations, as defined in Article II, 
applicable at the time of the provision of the withdr awal notice, will be maintained by both Parties.  
5. The United States and the EC may amend this U nderstanding by mutual agreement in writing.   
 WT/DS26/28 
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  A
RTICLE VI 
 
DEFINITIONS  
  For the purposes of this Understandi ng, "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 percent 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 percent of live 
body weight per day on a dry matter basis.   The carcass from which beef cuts are derived shall 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 character istics 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."   
  
A
RTICLE 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 an d Meat Products (Hormones)  before expiry of eighteen (18) months 
following the date referred to in Article II.2 or the opening of the tariff rate quota referred to in 
Article II.1, whichever occurs later. 
2. If a panel is established under Article 21.5 of the DSU in EC – Measures Concerning Meat 
and Meat Products (Hormones), the Parties will work together to ensure that:  
(a) The interim report is not issued and 
(b) The authority of the panel does not lapse due to the expiry of the period referred to in 
Article 12.12 of the DSU 
 
before the end of Phase 1 if the Parties do not withdraw from Phase 1 befo re its conclusion, or 
Phase 2, if the Parties should enter into Phase 2 and do not withdraw fro m Phase 2 before its 
conclusion.  The Parties agree to take the steps that may be necessary to achieve those 
objectives.   Without limiting the foregoing, the Parties agree to jointly request the panel to 
include in its Working Procedures that the pane l will provide notice to the Parties five (5) 
weeks before issuing the interim report; and the Par ties agree that if the date of issuance of the  WT/DS26/28 
 Page 7 
 
 
  interim report is during Phase 1 or Phase 2, the Parties will request the panel to suspend its 
proceeding.  
  
3. Neither this Understanding nor th e Parties' taking of any of the steps contemplated by this 
Understanding prejudices the disagreement between the Parties regarding whether the DSB 
recommendations and rulings in EC – Measures Concerning Meat  and Meat Products (Hormones)  
have been implemented.   
4. Other than as specifically set forth herein, this Understanding  is without prejudice to the 
rights and obligations of the United States and the EC under the WTO agreements.  
 
__________