EC MEAT DIRECTIVE DEADLINE SEEN FLEXIBLE
  U.S. officials said they held out
  little hope the European Community, EC, would withdraw a
  controversial meat inspection requirement, due to go into
  effect April 30 and which U.S. meat producers claim will cut
  off their exports.
      But the officials said they expect the EC to allow U.S.
  plants to continue shipping meat through the end of the year
  provided they submit a plant improvement program with the U.S.
  Agriculture Department.
      The EC's so-called Third Country Meat Directive will
  require foreign meat processing plants to comply fully with EC
  inspection standards beginning April 30.
      The U.S. meat industry has prepared a petition requesting
  the Reagan administration to retaliate against the EC rule.
      At issue are U.S. meat exports to the EC valued at 132 mln
  dlrs in 1985.
      The EC rule would require all U.S. plants to make changes
  in their inspection methods, ranging from veterinary staffing
  to use of wood.
      Last December, the EC determined that only one U.S. cattle,
  one hog and one sheep slaughtering facility could be approved
  without further review. USDA would have to certify that the
  plants had corrected the deficiencies.
      All remaining plants with a history or potential of
  shipping to the EC -- totaling nearly 400 -- would require more
  significant changes in plant constructions or procedures before
  further EC review.
      Robert Hibbert, general counsel for the American Meat
  Institute, said the meat industry expected to submit a formal
  trade retaliation petition by April 30.
      An interagency committee is reviewing the industry's draft
  petition.
      An official at the U.S. Trade Representative's Office said
  U.S. officials continued to press the EC to withdraw the rule,
  but that "the chances of that are not too good at this time."
      However, there is the "expectation" in U.S. government and
  meat industry circles that the EC will continue to allow
  shipments, at least through the end of the calendar year, from
  U.S. plants that submit to USDA a plan on how they will bring
  their operations into conformity with the EC regulation, the
  USTR official said.
  

