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[B] OPINION: Do The French Have A Game Plan For Beef Trade War?
Updated Fri Nov  12, 1999 


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THE BridgeNews FORUM: Viewpoints
on issues in international trade.
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* A Seemingly No-Win Strategy To Continue Ban On British Imports
May Disguise A Plan To Score Points Against EU Later


By David Walker, agricultural economist
Bridge News
NORWICH, England--What the French game plan is on the beef trade dispute
with Britain is difficult to figure out.

Developments since the science-based opinion that British beef is safe,
which the French government is on record as doubting, have not resolved
anything.

The French seem, from this side of the Channel, to be rapidly plowing
themselves into a corner. In the field of European agricultural politics,
however, this is a very improbable scenario.

The public stance of the French government is that they require further
assurance that British beef is safe before lifting their embargo. They have,
however, failed to date to specify what they seek beyond further information.

They were not persuaded by the Oct. 29 response of the European
Commission's Scientific Steering Committee to the new French food agency's
600-page report on the issue. The committee clearly indicated that French
concerns were ill founded.

The British government's response to this was to provide further
information. Again, this information failed to convince the French. Also it
failed to throw any light on either what their specific concerns are or how
they can be addressed within the scope of the science of the issue.

The European Commission's Nov. 11 deadline for an acceptable explanation
from the French has passed and a new deadline of Nov. 18 imposed. The
commission did, however, make a commitment to initiate legal action if the
embargo was not lifted or a satisfactory explanation provided.

Understandably nobody wants to take the legal route. It is time-consuming
and must surely result in ill will between the French and other member states
of the European Union. In Britain any further increase in ill will is
difficult to imagine.

The French have given the impression of making all the wrong decisions at
the wrong times. This suggestion, however, clearly underestimates the French
when it comes to handling European issues.

The French certainly may have underestimated the nature and direction of
the British reaction to its initial decision to maintain the embargo. They
may well have expected that their concern about food safety would have been
echoed in the British media, which has treated the issue as one of trade. The
French might not have expected British public opinion on the issue to result
in retail and consumer boycotts of French food products. Equally well, the
French may have expected more than nominal public support at home.

The French government continues to use food safety as the sole pretext
for the ban on British beef imports. At the same time, the scientific
findings supporting the safety of British beef provide the French with an
exit, if they are looking for one. The fallout in a worse-case situation --
France lifting the ban and British beef being found to be a health hazard --
could be deflected from Paris to Brussels.

By French standards, farm protests have been quite muted. While it is
difficult to overestimate the power of the French farm lobby, it has been
most effective when mustered against Brussels. British produce, in particular
lamb, has, however, been on the receiving end in the past. The French
agricultural lobby may, of course, be mindful of the potential adverse
reaction of British consumers to imports of French food products, if it takes
too high a profile.

It would seem, in any case, that the French government is not under any
great political pressure to lift the ban, either for farm or health reasons.
At least the British media is not carrying any stories of the Bastille being
stormed.

The gamble that the European Commission will not embark on the first
legal action against a member state on this issue also appears to be an
increasingly risky bet.

A possible scenario is that the French are keeping this pawn on the board
to be sacrificed for a favorable outcome on some other issue. Deals of this
nature are usually transacted in the European Council of first ministers.
While it is the European Commission's job to initiate and follow through on
any legal proceedings against a member state, the council has influence over
the commission.

There are two challenges in this for the French. First, because Britain
has the right after three months to take its grievance directly to the
European Court of Justice, any such deal would have to be acceptable to
Britain.

The second challenge is the European Parliament. This is a directly
elected institution and, therefore, more difficult to manipulate. It has
greater responsibilities and is more influential in the area of health and
consumer protection than in agriculture. And it appears eager to exercise the
increased powers it has recently been given. This was apparent in March when
it ousted the European Commissioner, en bloc.

The parliament has, however, a record of being aggressive on food health
issues, and on occasion not overly influenced by scientific evidence. It may
yet be influential on this issue.

The French have flair for exploiting half a chance, as they showed in
their semi-final victory over the Rugby World Cup favorites, New Zealand,
earlier this month. The French did not appear to have a well-defined game
plan, but they were able to make the most of their opportunities as they
arose. They are, however, fallible -- as their loss in the finals to the
Australians a week later showed.

DAVID WALKER, an agricultural economist, lives on his family's farm
outside Norwich, England. He recently served as senior economist in London
for the Home-Grown Cereals Authority and previously was executive director of
the Alberta Grain Commission in Canada. His views are not necessarily those
of Bridge News, whose ventures include the Internet site http://www.bridge.com/.

OPINION ARTICLES and letters to the editor are welcome. Send submissions
to Sally Heinemann, editorial director, Bridge News, 3 World Financial
Center, 200 Vesey St., 28th Floor, New York, N.Y. 10281-1009. You may also
call (212) 372-7510, fax (212) 372-2707 or send e-mail to opinion@bridge.com.

EDITORS: A color photo of the author is available from KRT Photo Service.
End

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[SLUG: BRITISH-FRENCH-BEEF-WAR:BN _ op-ed]