The Transatlantic Economic Council (TEC) was created in April 2007 at the EU-US Summit in Washington to foster transatlantic economic integration. It is aiming to achieve better regulation, barrier-free and secure trade, protection of intellectual property rights, and integration of financial markets although it is doubtful that it will be able to achieve such objectives.
The long-standing transatlantic quarrel over the EU ban on US poultry products because they are cleaned using chlorine has been one of the TEC main priorities. The US businessmen have been calling for a lifting of the EU’s 11 years ban on importing US chickens that are washed in chlorine. Under the EU rules poultry meat must be watched in water of drinking quality.
Guenter Verheugen, Vice President of the European Commission and TEC chairman has promised to the US that the Commission will lift the EU ban to the US chickens that are washed in chlorine. The Commission has promised that it will work with the Member States and the European Parliament to find an agreement to this issue, before the next TEC meeting, scheduled to take place in the autumn 2008.
On 28 May the European Commission has submitted to the Standing Committee on Food Chain and Animal Health a proposal to lift the 1997 EU ban to the US chlorinated chickens. The Commission Draft Regulation establishes strict rules and criteria for the use of antimicrobial substances. Operators would be required to setting up controls to check the potential effects of the use of such substances. Moreover, operators would be required to label poultry products that are cleaned in chlorine. The Commission proposal set a temporary authorisation of 2 years for the import of chickens for human consumption treated with chlorinate. However, such proposal has not pleased either the US or the EU Member States.
According to Daniel Price, US Co-Chairman of the TEC, the European Commission is already undermining the TEC, he said, “The message being sent out is that if an issue is politically difficult or affects the commercial interests of local domestic constituents, it may not be appropriate for the TEC. This really is not about the poultry trade – it is about the TEC’s integrity.”
The Standing Committee on the Food Chain and Animal Health voted on 2 June to keep the ban on US poultry imports rejecting the European Commission proposal. All the EU Member States, with the exception of the UK which has abstained, have voted to keep in place the ban on imports of poultry rinsed in chlorine. According to the comitology rules the Commission’s proposal has to go to the Agriculture Council.
Günter Verheugen has been trying to prevent a vote by the Agriculture Council calling for postponement of presentation of the proposal to the EU Member States after the next meeting of the Transatlantic Economic Council. Obviously, he was aware that such vote implies to shelve the proposal lifting of the EU’s ban on importing US chickens washed in chlorine. Mr Verheugen has making efforts to please the US however he has given false hopes.
On 12th December the Transatlantic Economic Council (TEC) held its third meeting. There was no breakthrough on any issue. Günter Verheugen has been refusing to talk about the poultry issue as he is now fully aware that he is unable to resolve the problem.
On 18 December, at the Agriculture Council, 26 Member States have confirmed their opposition and rejected the proposal to lift the ban on the US chlorinated chickens. The UK has decided to abstain.
The US has been calling for the EU to reopen its borders to its chlorinated chicken but the EU has not satisfied its demands. Hence, one of the TEC negotiations priorities was therefore unsuccessful.
This is effectively a blow on the EU and US trade relations. Günter Verheugen has promised that would work with the Member States in order to find an agreement on lifting the ban on US chickens but he has achieved the opposite. The TEC credibility is already at stake which will achieve nothing in removing barriers to transatlantic trade.
According to Europolitics, Günter Verheugen has justified the lack of progress on the issue saying “the precautionary principle dear to the Europeans,” whereas Americans prefer “a risk-based approach, with risk identified by scientific evidence."
It remains to be seen if the Obama Administration will have any interest in TEC.
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According to Euronews the United States has recently launched complaint with the World Trade Organization about the European Union’s 11-year ban on imports of American chlorinated chicken.