NZ lamb case strong: Sutton

By PHILIPPA STEVENSON AND NZPA

Agriculture Minister Jim Sutton is confident the World Trade Organisation will uphold New Zealand's case against United States restrictions on lamb imports.

The US Government lodged its expected appeal against last year's WTO disputes panel decision by the February 1 deadline.

The panel found that the three-year import tariffs on lamb from New Zealand and Australia did not conform to US obligations as a WTO member.

Mr Sutton said officials had been preparing a case, which should be heard by mid-year.

"We believe our case is extremely strong and expect it will be upheld," he said.

The tariffs have failed to stop the march of New Zealand and Australian lamb on to American dinner plates.

The US International Trade Commission has reported that American lamb producers are now making small profits after several years of losses in the face of imports from Australia and New Zealand.

But instead of holding back imports, Australian lamb sales to the US had actually increased 0.1 per cent since the tariffs were introduced in mid-1999.

Australian lamb imports are expected to grow 800,000kg, or more than 4 per cent, in the next two years.

New Zealand lamb imports fell by 8.5 per cent immediately after the tariffs were introduced but they are also expected to climb by 2002.

Meat NZ chief executive Neil Taylor said he would be surprised if President George W. Bush took any action on tariffs until after the appeal had been decided.

"Beyond that, however, there would be no excuse for failure to take swift action to remove the tariffs that unjustly penalise our lamb exports in a market of great potential."