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Trade war over beef between Britain and France
By Chris Marsden
30 October 1999
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Economic tensions between Britain and France have grown throughout this month
to the point of provoking an all-out trade war.

The dispute began following the October 1 announcement by the French government
that it would reject the European Commission's decision to lift a ban on
British beef, issued six days earlier. France based its decision on a report by
its Food Safety Agency (FFSA), which states that British beef is not safe for
human consumption as it is still not free from BSE or "Mad Cow Disease". The EU
imposed the ban on British beef in 1996, after a link was established between
eating BSE-infected meat and a new variant of the deadly human brain-wasting
disorder Creutzfeldt-Jakob Disease that has killed over 40 people.

The French decision provoked an immediate and angry response from British
farmers and the tabloid press. The next day the Blair Labour government asked
the European Commission to take action against France. EC president Romano
Prodi promised legal action, but only if scientific advisers found no evidence
to support France's position.

France agreed to allow British beef to be transported across its borders, but
not to be sold in its markets. British farmers began to organise an anti-French
campaign and the press followed suit with lurid denunciations of the French
people dating back as far as the battle of Agincourt in 1415 and including
obligatory nationalist references to France's defeat at the hands of the Nazis
in World War II.

The situation worsened on October 8, when Germany delayed a decision to import
British beef until a scientific examination of the FFSA's report.

British Agriculture Minister Nick Brown vowed to personally boycott all French
goods. Other Labour MPs called for a boycott of all French and German produce,
while the Conservative opposition and the tabloid papers demanded this and more
from the government. For the next two weeks, protests and counter-protests were
organised by British and French farmers, blocking lorries at channel ports.
On October 13 the European Commission found that the FFSA report was based on a
misinterpretation of scientific findings, primarily regarding the age of cattle
infected with BSE, but submitted it for further examination. At the October 15
EU summit in Finland, Blair pointedly refused to shake hands with French Prime
Minister Lionel Jospin and threatened legal action over the ban. Many British
supermarket chains began partial bans on French produce and schools in some
Conservative-controlled authorities followed suit.

On October 23, an EU report was released confirming that human and animal
sewage has been used by France's rendering industry to make animal feed. The
investigation began in August, after a German television report uncovered the
fact that feed had been contaminated with dangerous pesticides, heavy metals
and human waste. From then on the war of words between the two countries was
peppered with charges of "hypocrisy" levelled against the French and warnings
that eating its produce could lead to food poisoning.

Nick Brown swiftly promised that food labelling was to be tightened up to allow
consumers to make "informed choices". The National Farmers Union announced that
a "Great British Food Brand" scheme would be launched at a conference to be
addressed next month by Brown. In the midst of all this, the advice of a
scientific advisory committee to the Blair government that there is no case for
banning French meat was met with derision.

French Agriculture Minister Jean Glavany announced he was cancelling a planned
visit to Brown. The head of France's biggest farmers' union, Luc Guyau of the
FDSEA, warned of a blockade of Britain: "England is an island. An island is
easier to blockade than a continent," he said.

Blair was forced to call Jospin to try and resolve the issue, while he publicly
said, "a tit-for-tat illegal trade war with other European countries is not in
our interests". Jean Glavany said later that conditions for a "quiet dialogue"
were not in place.

EU scientists gave their findings on the 600-page French dossier yesterday,
ruling unanimously that there was no reason to revise the earlier decision on
British beef. Earlier reports said the investigating committee was split. This
will now be passed on to the European parliament, but should France maintain
its position, any legal action against it could take months.

France claims that the decline in BSE cases in Britain has been less rapid than
the Blair government says. It points out that BSE cases in the UK are at 650
per million cattle, compared with fewer than two per million in France, and
that this refutes claims of a problem-free national herd. Britain denies this
and states that the majority of cases now appear in cows over 30 months old and
therefore in animals that will not enter the food chain, let alone be exported.

The situation regarding the safety of beef does not appear to favour Britain or
France. There is substantial evidence to suggest that neither country is safe
regarding BSE. Britain's BSE eradication programme is based on the assumption
that cattle under two years of age are safe to eat, even though symptoms do not
show for some time after that. For its part, the head of the French veterinary
service in one region charged with eradicating BSE from its animals has
admitted that inspectors had checked just 28 out of 700,000 cows for the
disease this decade. Of these five tests had proved positive. Aside from this
minimal check, French farmers are left to report cases in their own herds. But
if they do so they stand to lose all their cattle, which acts as a powerful
disincentive. France is the only country outside of Britain where someone has
died of the new variant CJD.

Neither country will be pleased by reports that Swiss scientists have developed
a diagnostic technique that identifies BSE prior to the emergence of obvious
symptoms. In both countries, maintaining the profitability of the industry has
superseded questions of public health in tackling the BSE crisis. Similar
commercial considerations also underlie the growing tensions between the two
countries.

On one level the dispute is damaging to both Britain and France. Britain bought
25 billion francs ($4.1 billion) worth of food and agricultural goods from
France in 1998, more than a tenth of the total 230 billion francs ($37.7
billion) exported. In comparison, Britain sold 13 billion francs ($2.1 billion)
worth of farm goods to France last year.

This month, however, Britain announced a halving of profits in the beef
industry, largely as a result of the BSE crisis. Cattle farmers are desperate
to put the issue behind them. In comparison French producers have increased
their share of the domestic beef market from 75 percent to 90 percent, largely
as a result of the absence of British competition.

But far more is involved than the fate of the two countries' beef industries.
The "beef war" has become the focus for a major anti-European campaign in
Britain, uniting agricultural concerns with the Conservative Party and sections
of the media such as the Daily Mail and Daily Telegraph.

The issue erupted days after Blair announced the launch of a major cross-party
campaign to promote closer ties between Britain and Europe, which brought on
board leading pro-European Conservatives like Kenneth Clarke and Michael
Heseltine.

Ever since the beef dispute began, it has been used as a stick to beat Blair
with by those elements within the ruling class opposed to closer economic and
political integration with Europe. For his part, Blair has bent over backwards
to ingratiate himself with his right-wing critics. The pro-European campaign he
heads was initially conceived as a way of promoting Britain joining the
European currency, the euro. This was quietly dropped, in face of demands to
preserve the pound as a symbol of national pride and independence. In September
Blair was lobbied by the NFU to demand greater subsidies due to falling
profits, despite an earlier pledge of half a million in additional aid from a
government that has refused any other appeals for increased public spending.

Caught on a back-foot, by the time he appeared at the October 15 EU summit,
Blair's own political agenda was in thrall to that of his opponents. Talks at
the summit were based on comprehensive plans to integrate European policing and
immigration policy. Instead of being able to build on efforts to establish
friendly relations with France and Germany, the two main social democratic
governments on the continent, he was sidelined into pathetic gesture politics.

Jospin has his own domestic problems that militate against a climb-down on the
beef question, not least the massive unpopularity of any decision to do so
amongst French voters. There is, moreover, an equally vociferous protectionist
lobby in France, made up of small farmers, the Front National, the Communist
Party, union leaders and green activists. This lobby has until now taken a
strongly anti-American stance, focusing on American sanctions against French
food imports, imposed in retaliation for Europe's ban on US hormone-fed beef.
But there are forces within it hostile to the EU and to Britain in particular,
given its perceived role as an American proxy in political affairs.

Jospin has been competing with his Gaullist rivals to win over these forces in
the run-up to the World Trade Organisation negotiations on November 30. He has
promised to be "extremely firm in the defence of our national interests and
those of the European community" and "make sure that the WTO embraces the new
problems of food safety and the environment". A retreat on BSE at this point
would severely undermine his credibility.

Both governments give the appearance of being caught up by events and forces
beyond their control. The Foreign Offices of both countries, for example, have
expressed grave concern that the row over beef could undermine plans to develop
a common European defence capability. France and Britain, as Europe's two major
nuclear and military powers, have played a key role in efforts to develop a
combined European military policy. An Anglo-French summit on the issue is due
for November 25 in London. But a French diplomat told the Financial Times, "if
this problem is not settled, it will be really very difficult for both parties
to have the summit."

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World Socialist Web Site
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