We reported in May that there had been a provisional agreement between the EU and the US regarding the ongoing "Beef Dispute" ("Provisional Agreement in EU-US beef trade dispute"). However, there has been an interesting twist coming from the other side of the Atlantic.

International Trade Solutions reported in April that a free trade agreement between the European Union and South Korea was close (“EU-South Korea Pact Near”). However, a recent summit in Seoul has revealed that pre-existing differences over the issue of duty drawback in the auto sector have prevented an agreement from being reached.

It is being reported from both sides of the Atlantic that the EU and the US have reached a provisional agreement in the long-running dispute over the EU ban on American hormone-treated beef.

What has been agreed?

Under the agreement, the EU will provide access at zero duty of up to 45,000 tons of US beef produced from non-hormone treated cattle. At present 11,500 tons of US beef are allowed into the EU and they are subject to a 20 percent duty rate.  In return, the US has agreed to forego new sanctions against a wide-range of EU products that were due to come into force at the beginning of May 2009. The US has also agreed to eliminate all sanctions against EC products but in the fourth year of this agreement. Exporters who export to the US should be aware that existing (reduced) sanctions will remain in place for the coming four years.

The signing of a finalised economic partnership agreement (EPA) between the European Union (EU) and Southern African countries appears to be imminent despite regional trade fragmentation remaining a danger.