Transtasman US lamb plan on cards

By Audrey Young

Political reporter

New Zealand and Australian trade ministers may make joint representations in Washington next month to press their case against trade restrictions being placed on lamb imports.

Trade Minister Lockwood Smith said he was talking to his Australian counterpart, Tim Fischer, about turning up "shoulder to shoulder" to put a joint case.

Dr Smith delivered New Zealand's case personally yesterday to United States ambassador Josiah Beeman at Parliament.

The International Trade Commission, an independent statutory body in the United States, has recommended that tariffs and quantitative restrictions be placed on imported lamb to protect the United States sheep meat industry. Those quotas would hold exports at last season's levels for one year and put punitive tarrifs on additional exports.

President Bill Clinton is due to make a decision by the first week in June.
Dr Smith told Mr Beeman the New Zealand industry was willing to fund a marketing drive in the United States to develop the lamb market for the benefit of all producers.

"That's the problem over there. The market hasn't been developed adequately to compete with chicken and pork," Dr Smith said.

"Ours is a win-win proposal, whereas the ITC ones are not. They are actually lose-lose recommendations. The United States consumers lose because they miss out on good product, the United States sheep-meat industry loses because their market won't be developed. And we lose."

Dollar figures are not yet being discussed with the Americans but it is thought a successful outcome would include a formal contract between the Meat New Zealand and the American Sheep Industry Association.

Dr Smith said it would be "so embarrassing" if the trade-liberal United States accepted the ITC recommendations.

Mr Beeman said the United States, along with New Zealand, was "one of the most open economies in the world."

He declined say what his advice to President Clinton would be.