NZ takes strong line on lamb

By Philippa Stevenson

United States officials have found that arguments for tariff-free lamb imports are compelling, but are also facing strong domestic pressure, says Lockwood Smith.

Dr Smith, Minister for International Trade, is due back from Washington today after meetings with key US officials at the weekend as part of a joint Australian-New Zealand bid to combat recommended restrictions on the lamb trade.

In March, the US International Trade Commission responded to a plea from the American Sheep Industry Association and recommended that President Clinton impose tariffs on imports from the Tasman neighbours.

Dr Smith said New Zealand argued that the American industry should work with the importers to increase the market for all - the same advice the US sheep association received in a report it had commissioned.

"It's pretty hard to ignore," he said.

Coinciding with Dr Smith's visit, Meat New Zealand and its Australian counterpart, Meat and Livestock Australia, launched a proposal for the two countries, along with US sheep producers, to jointly finance lamb promotion.

New Zealand and Australia would contribute $US1.5 million ($2.7 million) a year for four years, and the American industry would initially put up $US750,000.

Dr Smith said one Washington official told him he had never seen such a constructive proposal, and others found New Zealand's argument particularly compelling.

"But we shouldn't underestimate the political pressure. The [US] system is very vulnerable to political persuasion."

Many of the officials he met had been hosted by the American sheep farmers at a function the previous night.

Dr Smith brought forward his visit to be in Washington at a critical time for New Zealand's $100 million lamb trade. The chief executive of Meat New Zealand, Neil Taylor, has also been in Washington to put the industry's case.

Our Ambassador to the United States, Jim Bolger, would continue to push the New Zealand cause in Washington and "our industry has to try and talk to the American sheep farmers, " Dr Smith said.

President Clinton is expected to announce his decision in early June.