by Ken Krizner, senior editor
The speech was supposed to focus on "New Politics and Global Trade." While it did touch on that subject, such speeches will invariably shift to one of the most controversial issues facing the world meat industry when it is given by a European Union official.
The official: Franz Fischler, EU commissioner of agriculture. The issue: hormones.
The World Meat Congress ended on a sour note when the subject turned to the long-standing issue of European nations not importing U.S. beef because of hormones. The sour mood continued a week later when Fischler and USDA Secretary Dan Glickman met for two hours in Washington.
While both sides tried to put on happy faces over the issue, which has festered for six years, it was evident that both U.S. and EU officials continue to be set in their opinions. Even more evident is that both sides continue to be exasperated by the other.
Since 1989, EU nations have banned the production and import of meat from animals treated with growth hormones. The U.S. meat industry claims hormones used on its cattle are well within safety limits.
Estimates of lost trade to the EU caused by sanitary and phyto-sanitary restrictions, including the hormone ban, is nearly $100 million a year, according to USDA estimates.
Fischler, who took over as commissioner in January, was honest in his assessment of the situation. He told congress attendees that "public opinion will outstrip the opinions of scientists, politicians and economists" on the issue.
He pointed to the murder earlier this year of a Belgian veterinarian, who was allegedly killed for his anti-hormone stance by a "hormone Mafia," engaged in illegal trade in growth hormones.
"Such events, and their widespread publicity, only serves to heighten the nervousness of the European public on [the hormone] issue," he said.
"Trade disputes, such as hormones, are deadly for meat producers," Fischler added. "They tend to make consumers insecure and accelerate the downward pressure in meat demand that we are experiencing."
While admitting that the hormone controversy has had a negative impact on trade, Fischler noted that some U.S. companies, as well companies from other major meat exporting nations, have been able to comply with EU rules.
"Nevertheless, I am aware that the situation needs to be reassessed from a scientific point of view," he said. "We need to take the bull by its horns."
Fischler publicly announced that a broad-based conference for the purpose of re-evaluating the ban will convene in October. A joint U.S.-EU working group will set the agenda for the conference.
The conference is expected to bring together scientists, meat processors, consumer advocates and government officials from the United States and Europe.
Glickman warned, however: "The conference can be constructive if it is not an attempt to delay the issue."
The acknowledgment that the ban needs to be resolved scientifically was welcome news for Philip M. Seng, U.S. Meat Export Federation president.
"It was significant for [Fischler] to acknowledge publicly that the hormone ban has become a food safety problem in Europe," he said during a news conference. "Convening a conference to bring a comprehensive, science-based perspective to this issue could be a positive step in resolving the ban."
However, Seng was disappointed that Fischler chose to wait several months to begin the conference.
"The issue needs to be resolved immediately, not later," Seng cautioned. "We've waited long enough for a resolution to this barrier; we need to get a date certain by which this issue will be resolved."
Seng would not divulge what options the U.S. red meat industry would explore if the situation continues to be prolonged. And while acknowledging that the patience of U.S. processors has begun to wear thin, he said the patience of European consumers is also on the wane.
"[The United States] is mounting pressure to resolve the situation," he noted. "But not as much pressure as from Europe, where there is a major issue of declining consumption and confidence in red meat."
Fischler said the hormone controversy has reached the highest reaches of European government.
"European consumers have a high level of concern over the authenticity, genuineness and general quality of the food they eat, and in particular any adverse effects that it might have upon their health," he pointed out. "They have been very concerned about eating hormone-tainted meat. This concern has been reflected in the strong positions taken by their elected representatives in the European Parliament."
In response to Fischler's speech, Glickman told the congress audience: "The United States will not accept the use of unsound science to restrict trade," and not allow unsound science-based food safety issues to become the next generation of trade barriers.
A week after the congress, Glickman accused the EU of violating trade rules by barring U.S. beef from its market during a private meeting with Fischler.
Glickman threatened to take the issue to the World Trade Organization, the new arbiter of trade disputes, if the situation is not resolved by the end of the year. Asking the WTO to intervene would start a lengthy dispute-resolving process.
"I did let [Fischler] know that this was a linchpin issue of American agriculture and the issue needed to be resolved this year, or else we would have to pursue our other options that would include a WTO complaint," Glickman said after the meeting.
Speaking at the same news conference with Glickman and Fischler, U.S. Trade Representative Mickey Kantor called the hormone ban a violation of world trade rules.
"There is no legitimate scientific study that has ever been done to indicate there is a problem with the use of hormones to accelerate animal growth," he said.
Fischler said changes in the hormone policy would be quickly implemented after the October conference.
But he also reiterated his view that consumer concerns must be taken into account when discussing the change of policy.
"One must respect the fact that the use of hormones in food products is viewed differently by the European public," he added. MM&T
At the World Meat Congress and in Washington, one point is made clear: U.S. patience with the EU is wearing thin
USDA Secretary Dan Glickman (left) and Franz Fischler, European Union commissioner of agriculture, confer during the World Meat Congress. Later in Washington, Glickman and Fischler were unable to resolve the issue of the EU's hormone ban. Fischler has announced that a conference re-evaluating the hormone policy will convene in October.
# MEAT MARKETING & TECHNOLOGY -- AUGUST 1995
AUGUST 1995 -- MEAT MARKETING & TECHNOLOGY #