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Tuesday, July 13, 1999 Published at 09:49 GMT 10:49 UK


Business: The Economy

UK Government joins beef war

Britain is opposed to the ban on US beef

A UK minister has launched into the row over US beef imports by telling the US administration to stop a "brutal" trade war with Britain and the rest of Europe.

World trade wars

The US Government plans to add crippling 100% import tariffs on a range of European goods in retaliation for the European Union's refusal to import US hormone-treated beef.


Mick Sloyan of the Meat and Livestock Commission: This will cost the British pork industry £8.5mn
British meats, Scottish drinks and French bottled water are among the products likely to be targeted.

But according to Trade Minister Brian Wilson, the UK is opposed to the EU ban on hormone-treated beef, and therefore should not be punished.

'Draw back' plea


Trade Minister Brian Wilson: "We accept the WTO decision"
He urged the US government to behave more reasonably and investigate other types of protest.

"The bottom line is it is wrong to pursue a dispute by taking action against companies and communities that have absolutely nothing to do with that dispute," he said.


Philippa Thomas reports: "Farmers are ready to back a trade war"
"I again express the hope that the US will draw back from what I believe is a wrong course of action."

He said he did not want tariffs imposed on any European industry, and as Britain was opposed to the ban on US beef it was particularly unfair to target UK industries.

'Brutal' option

The government has suggested some American goods could instead be given increased access to the European market.


The BBC's Jonathan Beale explains why the dispute is not likely to be resolved soon
Mr Wilson said retaliation would be a "brutal option".

"They just shouldn't do this. There are other ways."

The World Trade Organisation (WTO) has ruled against Europe in the dispute, but slashed the amount of damages the US can demand.

Europe must comply

Trade spokesman at the US Embassy in London Charles Reis told the programme: "The only currency that the WTO can use to enforce its ruling is to authorise the raising of tariffs somewhere else.


Charles Reis, trade spokesman at the US Embassy in London: "Washington has been left with no choice"
"Nobody wants to do this - we would much rather Europe came into compliance with the ruling."

He said the US was prepared to look at a compensation solution, but only in the context of a plan that involved lifting the beef ban.

The list of products on which the US will impose tariffs is expected to be published later in July.



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