Pork industry reconsiders action

By Philippa Stevenson

The Pork Industry Board has gone back to the drawing board with its application for trade restrictions against imported pork.

In an application for a temporary safeguard lodged with the Ministry of Commerce in May, the board said that rapidly rising Canadian and Australian imports had cut local prices by up to $18.5 million.

It estimated the imports had halved the income of 520 registered pig farmers in the last year. The claims mirror those made by American sheep farmers against imports of New Zealand and Australian lamb and, embarrassingly for the red meat industry, came at a time when the US was being accused of hypocritical trade protectionism.

After meeting ministry investigators on Tuesday, pork board director Rob Jeffrey said the board would examine technical issues raised by the ministry investigators before responding "with further information in due course."

Ministry senior investigator Bruce Cullen said matters raised with the board included the application's position under the Closer Economic Relations (CER) trade agreement with Australia, and the definition of industry.

The ministry sought legal advice on whether the CER agreement over-rode the World Trade Agreement on Safeguards, on which the New Zealand Temporary Safeguard Authorities Act is based. It could mean a safeguard action is not possible against Australian goods.