EU TO END RETALIATORY TARIFFS

On Saturday, October 30, the Biden administration announced that the European Union (EU) will lift retaliatory tariffs on U.S. exports in exchange for duty-free access for some steel and aluminum shipments to the U.S. U.S. dry bean exports to the EU have faced 25% retaliatory import tariffs since 2018 as a result of a trade dispute over U.S. tariffs on EU steel and aluminum. This announcement was made on the sidelines of the G-20 meeting of world leaders ahead of the international climate conference in Glasgow.

The EU had been the largest regional export market for U.S. dry beans prior to the imposition of 25% tariffs. Many of the dynamics have changed over the past three years as a result of retaliatory tariffs and the departure of the United Kingdom from the Union (Brexit). While some bean exports have remained steady to top markets such as Spain and Italy, others have declined steadily as the EU sought more competitive prices from other origins. With the removal of retaliatory tariffs, the U.S. dry bean industry can now focus on not only maintaining long-standing market share but on increasing exports in response to substantial interest in plant-based healthy and sustainable eating. The United Kingdom (UK), one of the top three European trade destinations for U.S. dry beans now operates as a stand-alone market separate from the EU. This presents significant growth opportunities for exports of U.S. dry beans as the UK is one of the most advanced markets in promoting plant-based foods. The UK has yet to remove the 25% retaliatory tariffs but it is anticipated that this will also happen before the end of the year. The U.S. dry bean industry has an exciting road ahead in the EU and the UK in 2022. We will keep updating this information as it is available.