U.S. officials said they held outlittle hope the European Community, EC, would withdraw a
controversial meat inspection requirement, due to go into
effect April 30 and which U.S. meat producers claim will cut
off their exports.
    But the officials said they expect the EC to allow U.S.
plants to continue shipping meat through the end of the year
provided they submit a plant improvement program with the U.S.
Agriculture Department.
    The EC's so-called Third Country Meat Directive will
require foreign meat processing plants to comply fully with EC
inspection standards beginning April 30.
    The U.S. meat industry has prepared a petition requesting
the Reagan administration to retaliate against the EC rule.
    At issue are U.S. meat exports to the EC valued at 132 mln
dlrs in 1985.
    The EC rule would require all U.S. plants to make changes
in their inspection methods, ranging from veterinary staffing
to use of wood.
    Last December, the EC determined that only one U.S. cattle,
one hog and one sheep slaughtering facility could be approved
without further review. USDA would have to certify that the
plants had corrected the deficiencies.
    All remaining plants with a history or potential of
shipping to the EC -- totaling nearly 400 -- would require more
significant changes in plant constructions or procedures before
further EC review.
    Robert Hibbert, general counsel for the American Meat
Institute, said the meat industry expected to submit a formal
trade retaliation petition by April 30.
    An interagency committee is reviewing the industry's draft
petition.
    An official at the U.S. Trade Representative's Office said
U.S. officials continued to press the EC to withdraw the rule,
but that "the chances of that are not too good at this time."
    However, there is the "expectation" in U.S. government and
meat industry circles that the EC will continue to allow
shipments, at least through the end of the calendar year, from
U.S. plants that submit to USDA a plan on how they will bring
their operations into conformity with the EC regulation, the
USTR official said.
 Reuter
