The ring-fencing of 35,000t (from a total of 45,000t) of high-quality beef quota was before the agriculture committee of the EU parliament on Tuesday as part of a ratification process.

The allocation of the majority of this quota to the USA will have a neutral effect on EU farmers, as the 45,000t quota was originally created with the USA in mind as a resolution of the EU-US dispute on the EU ban on American hormone-treated beef from the EU market.

Level of access

The issue almost came to a head at the end of 2016 when the US threatened to reopen the issue because the US level of access to the quota had severely diminished, with other countries filling an ever-increasing share of it.

It was particularly attractive, as, unlike the Hilton quota that has a 20% tariff, this 45,000t quota is tariff-free.

In practice, it now means that the US has a dedicated 35,000t tariff-free quota for its beef exports to the EU, with the strict provision that they are produced without hormones.

Steak meat

US interest in the EU market, as with all suppliers, is accessing the steak meat market. The USA is unique in global beef trading terms, in that it is among the world’s biggest exporters and biggest importers of beef. This is because it doesn’t achieve carcase balance in its beef market from domestic production.

It produces more steak meat than is consumed in the country and less forequarter manufacturing beef is used in burgers than is required.

Therefore, the US exports approximately 1.4m tonnes of mainly hindquarter beef annually and imports the same of forequarter.

The EU will now be an attractive destination for up to 35,000t of this, although the EU does export some forequarter beef in return, with Ireland sending over 4,000t so far this year.