EU/USA: Wheat gluten trade war averted
A threatened trade war between the EU and the US over wheat gluten has been averted following a US decision not to extend its quota on European exports. The European Commission welcomed Washington's move as "sensible" and said it would not now renew the EU tariff on imports of US corn gluten feed, which had been applied partially to compensate for lost trade. The American wheat gluten quota was imposed in 1998 and cut EU exports to the US by 40% while leaving the other major suppliers, Australia and Canada, effectively untouched. In January this year the US action was found to be incompatible with WTO rules.
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