Advocate-general to rule on injunction against UK beef ban

Date: 11/07/1996

By Michael Mann

EUROPEAN Court of Justice Advocate-General Guiseppe Tesauro will decide tomorrow (12 July) whether to grant the UK government an injunction temporarily lifting the EU's ban on British beef exports.

The following day will see a separate judgement on a similar case brought by the National Farmers' Union.

The crucial decisions come just three weeks after EU heads of government agreed a framework for a gradual lifting of the ban.

But London is acutely aware that its only real prospect of a rapid resumption of trade is for the Court to grant 'interim measures' against the ban.

It also knows that, even if its appeal is successful, the chances of actually exporting much meat anywhere will remain extremely limited.

The UK's principal argument is that trade restrictions to allay consumer fears fall outside the Commission's powers and that the ban - particularly on exports to non-EU countries - is disproportionate.

Its Union partners will be hoping that the action is unsuccessful, conscious that any resumption of exports from the UK will probably have dire consequences for a beef industry already on its knees - and risk plunging the EU into a new crisis by reopening the political argument over its original decision to impose the ban.

London claims there is no legal base under EU treaties for the restriction of one country's exports because of a collapse in consumer confidence.

Commission officials counter that the question of consumer confidence is inextricably linked to public health, and is covered by Article 43 of the Treaty of Rome, which deals with the harmonisation of veterinary legislation.

The preliminary judgement comes amidst rumours of illegal exports of British beef, which emerged earlier this week from the German embassy in Rome and led Germany's Health Minister Horst Seehofer to call for a formal inquiry.

Italian officials said they had found no firm evidence of contraband beef being shipped to Italy, but Agriculture Commissioner Franz Fischler has written to British Farm Minister Douglas Hogg calling for vigilance and has also asked Seehofer for additional information.

Any evidence of illegal exports would come as a major blow to the UK's attempts to secure a further easing of the ban.

Meanwhile, the continuing depression on the Union's beef market has forced the Commission to speed up its preparation of proposals to reform the sector. These are now expected before the end of July, rather than in the autumn, as had been widely anticipated.

The main aim will be to reduce production, probably by tightening up the existing tools at the Commission's disposal. Member states are likely to be presented with a range of options, including further reducing the maximum weight of carcasses allowed into intervention.

Other possible measures could include tightening the stocking levels under which farmers qualify for premiums, paying premiums earlier in an animal's life and encouraging more farmers to take up the premium for slaughtering calves of less than ten days old.

Speaking at the Economic and Social Committee yesterday (10 July), Fischler painted a bleak picture of the effects of the BSE crisis.

He said that by the end of 1996, the crisis would have caused intervention stocks to rise to more than 600,000 tonnes, consumption to fall by 11&percent; and EU spending to increase by 1.5 billion ecu.

The costs of bailing out the beef sector have also intensified the pressure on the Commission to make savings elsewhere, with arable framers emerging as the most likely victims.

Following strong hints earlier this year, the Commission is expected to publish formal notice of its right to reduce arable aid and set-aside compensation payments for the 1997 harvest.

Officials stress this does not mean premiums will necessarily be cut, but is merely a means of protecting the Council and Commission from any legal challenge if such a decision is made.