EUROPEAN COMMUNITIES – MEASURES CONCERNING MEAT AND MEAT PRODUCTS (HORMONES)
Document: Joint Communication from the European Communities and the United States
Date: 30 September 2009
Document codes: WT/DS26/28
Complainant: U.S.
Respondent: EU
Third parties: Australia, Canada, New Zealand, Norway
Dispute stage: Implementation & Compliance
Agreements cited: Art. III, XI  GATT 1994Art. 2  Technical Barriers to Trade (TBT)Art. 4  AgricultureArt. 2, 3, 5  Sanitary and Phytosanitary Measures (SPS)

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 (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

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 Memorandum 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

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 duties, 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:

(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 specified 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.

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 Settlement 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 referred 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 withdrawal notice, will be maintained by both Parties.
5. The United States and the EC may amend this U nderstanding by mutual agreement in writing.

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 before 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 Parties agree that if the date of issuance of the

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.