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Consumers to feel bite of beef war
July 30, 1999 From Correspondent Gary Tuchman NEW YORK (CNN) -- What does U.S. beef have to do with European truffles, Italian tomatoes and French chocolate? They are new tools in an old trade war. The European Union bans most American beef. The EU says it is concerned about the health effects of the typical U.S. practice of treating beef with growth hormones, even though U.S. officials say there is no scientific evidence it is harmful. The United States has struck back with a 100 percent tariff on 34 European products ranging from pork and liver pate; to prepared mustards and French raspberry jams. U.S. stores will now have to pay twice as much for those products. New York's Grace's Marketplace will now pay $2,400 for a pound of white truffles instead of $1,200. "I'm going to try to keep the prices low as I can so that people can say that Grace's is not overpricing anything," said owner Joe Dorie. But at Cafe Mozart's, consumers will see a difference in paying for gourmet chocolate treats. "We'll definitely increase our prices, because our prices will go double," said owner Amir Benesh. Those who regularly buy any of the 34 targeted items now have decisions to make. "I don't know if I could give up something like Roquefort cheese because it's twice the price, but I think I'll buy a little less -- very sorrowfully," said one Grace's customer. Trade officials say they're sorrowful it's come to this, and it could be the beginning of similar trade wars. "The U.S. hopes the Europeans will avoid imposing new restrictions on American genetically treated food," said Bob Hormats of Goldman Sachs. "Whether the Europeans do or don't will determine whether the United States imposes more of those measures down the road." RELATED STORIES: WTO to approve sanctions against EU in beef row RELATED SITES: European Union
LATEST FOOD STORIES: Texas cattle quarantined after violation of mad-cow feed ban
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