According to EU sources and diplomats, the European Union has agreed to a deal that will allow American farmers to increase their share in the European beef market, which could help ease transatlantic trade tensions.

The agreement will result in the United States receiving a guaranteed share of 45,000 tons of the EU quota for the supply of hormone-free beef. The quota was agreed back in 2009 to resolve the dispute between the two parties over the EU ban on the use of growth hormones in meat.

American farmers initially dominated the quota, but in accordance with the rules of the World Trade Organization (WTO), the quota was also to be granted to non-US suppliers.

But Australia and Uruguay, and more recently, Argentina, are steadily increasing their exports, thereby reducing the US share in the quota to 30%.

The European Commission, coordinating the trade policies of 28 EU countries, has entered into an agreement with the United States that American farmers receive an initial quota of 18,500 tons, increasing it in seven years to 35,000 tons.

But in order for the agreement to comply with WTO requirements, the European Union also needs to conclude an agreement with “substantial” suppliers. Australia confirmed that it was reluctant to accept the adjustment, and EU diplomats said Argentina and Uruguay also accepted the change.

The EU is currently negotiating free trade with Australia and the Mercosur trading block from South America, of which Argentina and Uruguay are members. In one and the other negotiations, an increase in beef supplies to Europe is a key requirement.