WTO upholds lamb decision

2:00 PM

Today's World Trade Organisation decision on New Zealand lamb exports to the US brings a two year battle nearer to a successful conclusion.

The WTO disputes panel has reaffirmed a decision on US tariffs and quotas on New Zealand and Australian lamb, declaring them "unfair."

Trade Minister Jim Sutton says it is a victory that the panel has backed up the original ruling published in October.

He is not popping the champagne just yet, however, saying the US will appeal the decision.

Meat Industry Association Executive Director Brian Lynch says the ruling is very positive news.

He says the dispute with the US stymied what had been steady growth of New Zealand lamb exports to that important market.

But Mr Lynch says that while the clear and unequivocal support from the WTO is heartening for our farmers, an appeal is inevitable.

He says the precedents this case would set for their trading disputes with other countries is a very important factor.

Mr Lynch says on the basis of the arguments put forward and the WTO's response, he is confident we will prevail.

The US appeal is likely to be heard early next year with a decision in June.

- IRN