
In light of the assumption that the use of hormones in promoting the growth of cattle may lead to risks to human health, European authorities began to enact regulations to prohibit the use of such hormones. The law also requires a trade ban over the meat carrying such veterinary drug residues. The United States and Canada, while permitting the use of hormones, suffered heavily from the trade restrictions. After the failure of consultations with Europe, these two countries filed a complaint at the World Trade Organization (WTO), alleging that the European measures violate the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS).
The 1998 WTO ruling sided with the complaints. Yet, there was no sign that the trade ban would be lifted. The trade regime then authorized the complaining parties to apply sanctions against Europe. Following the verdict, Europe continued to conduct research on hormones and made every effort to provide more definite risk assessments and to offer more convincing scientific evidence. Europe was confident that its newly adopted hormones directives complied with relevant obligations of the SPS Agreement, and appealed to its counterparts to terminate the retaliation. When no consensus was reached, Europe decided to bring the dispute to the WTO for adjudication on the continuing sanctions. The new proceeding offers a good opportunity for reviewing the compatibility of such regulations with European obligations under trade agreements.