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Tit-for-tat sanctions hit foie gras exports

17-Oct-2002

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The 100 per cent import tax imposed on French foie gras by the US has cut sales there by 50 per cent, but the industry is still buoyant thanks to strong exports to Asia and other European nations.

The decision by the European Union to ban imports of beef from the US because of that country's use of growth hormones in cattle, and the subsequent tax hike on imports of a number of European luxury goods by the US, has taken its toll on sales of French foie gras.

The latest figures from the Comite interprofessionnel des palmipedes a foie gras (Cifog), the industry's producers' association, show that sales of the liver pate to the United States have dropped by 50 per cent as a result of the 100 per cent tax rate imposed by Washington three years ago.

The foie gras industry has been subjected to a rollercoaster ride in terms of sales over the last few years, Cifog told Les Echos, with sharp rises in consumption in 1999 and 2000, related to the Millennium celebrations, and a return to more normal levels in 2001. Consumption last year was down 5 per cent compared to 2000, but nonetheless up 11 per cent compared to 1998, the last 'normal' year.

Exports, excluding the US, were up 15 per cent in 2001, helped by strong sales in Spain, Belgium, Japan and Hong Kong. Export sales of raw foie gras rose 16 per cent to 1,282 tons in 2001, the paper said, although exports processed foie gras products registered a decline from 733 tons to 658 tons, due almost entirely to the US sanctions. Cifog told the paper that it was considering taking legal action against the US for the tax increases, claiming that they were illegal.

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