BOX 2.5 Case Highlight Limiting Imports of Hormone-Treated Beef Case Name and Tribunal European Communities-Measures Concerning Meat and Meat Products (Hormones) (WTO Appellate Body, 1998) 17 Facts In response to concerns of EU citizens about the risks presented by beef injected with natural and synthetic growth hormones, the European Union imposed a ban on the import of such beef. The United States challenged t he restrict ion under the SPS Agreement, claiming t hat the panel reviewing the issue evaluated the risk associated with the use of hormones for growth promotion twice and the only evidence on record showed that the studies looked at a "theoretical framework for the systemic analysis of such problems" but did not actually investigate and evaluate the problems that arise from the use of such hormones. Issue Did the EU's ban on hormone-treated beef comply with the requirements of the SPS Agreement? Decision A risk assessment, as required by Article 5.1, is "a scientific process aimed at establishing the scientific basis for the sanitary measure a Member intends to take:' The ban was found not to be based on a risk assessment that followed scientific principles and procedures and, therefore, was in violation of the SPS Agreement. Analysis/Application In order to rely on exceptions to the GATT under the Agreement on Technical Barriers to Trade (TBT Agreement), member states must rely on sound scientific principles and provide evidence of such. Aftermath The case raised difficult issues and required a consideration of the uncertainty presented by divisions of scientific opinion. The European Union was unwilling to remove its restrictions on the import of the hormone-treated beef, with the result that the WTO in 1999 authorized the United States and Canada to collect penalties of more than $100 million per year in extra duties on European exports. The European Union brought the issue back to the WTO, where unprecedented open hearings were held in 2005. The European Union argued that new scientific evidence showed that the European Union complied with the 1998 WTO judgment. The impasse between the United States and the European Union was settled by way of a negotiated agreement in 2012 in which the European Union kept its ban on importing hormone-treated beef but increased its quota for importing beef from Canada and the United States.

QUESTION

1. Provide a detailed explanation of the European Communities - Measures Concerning Meat and Meat Products (Hormones) (WTO Appellate Body, 1998) Case. Textbook Box 2.5. page 44. Your discussion should reference both the TBT Agreement and the SPS Agreement.