EU nixes beef compensation
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June 3, 1999: 5:16 a.m. ET
Trade chief Brittan says U.S. claims 'excessive'; may open other EU markets
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LONDON (CNNfn) - The EU has ruled out compensation for U.S. exporters hit by the Europe's controversial ban on hormone-treated beef, acting EU trade commissioner Leon Brittan said in an interview with CNN Thursday.
However, Brittan adopted a conciliatory tone ahead of the latest World Trade Organization ruling on the U.S. plan to impose $202 million in sanctions against a range of exports, due later Thursday. He said the EU would open its door to more U.S. products while scientific tests continued.
Brittan described the U.S. compensation claim as "grossly excessive" and said the EU will seek arbitration with the WTO to amend the compensation claim "They will not get away with that," he told CNN.
The 10-year old beef dispute is part of a lingering series of trade issues which have clouded relations between the EU and the United States and threatens to derail the EU-U.S. summit on June 18.
The EU's tough data protection rules are also to be discussed at that meeting after U.S. complaints that its companies are being unfairly discriminated against.
Brittan called for an end to the "megaphone diplomacy" which has characterized the beef dispute with increasingly strident calls from U.S. chief trade negotiator Charlene Barshefsky met by firm ripostes from EU officials.
"We have new evidence that hormone-treated beef is dangerous," claimed Brittan, citing reports from U.S. scientists as well as the EU's own. "We will offer more access for U.S. goods into Europe [while tests continue]."
The EU's call for arbitration means that the WTO will not issue a final ruling until late July. Brittan refused to be drawn on what compensation the EU would deem acceptable if its calls for a cash-free settlement were rejected.
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