EU raises corn gluten tariff

The European Union will raise tariffs on U.S. corn gluten imports next week in response to U.S. tariffs on wheat gluten, a spokesman said Friday, Associated Press reports. The EU action follows a World Trade Organization ruling that found higher U.S. tariffs on wheat gluten imports from the EU were improper because other countries were exempted. A U.S. appeal was rejected and the WTO's dispute settlement body adopted the appellate body's report Friday in Geneva. Anthony Gooch, spokesman for EU Trade Commissioner Pascal Lamy, said the compensatory tariff would take effect Wednesday. The tariff increase on U.S. corn gluten imports will be about $4.70 a ton. The EU said its wheat gluten exports to the United States before the measures were worth $41 million, but had been cut by 40 percent by the quota. The EU held 30 percent of the U.S. wheat gluten market at the time the quota was applied. Gluten is the portion of the grain which adds protein to breakfast cereals, pet food and livestock feed