US says lamb dispute must not derail Apec

By Brian Fallow

WELLINGTON - Bilateral disputes such as that between the United States and New Zealand over lamb should not be seen as undermining the usefulness of Apec, a senior US trade official said yesterday.

Deputy US Trade Representative Richard Fisher, speaking from Washington in a satellite press conference linking Tokyo, Canberra and Wellington, said a decision on US sheep industry calls for temporary relief from the full force of competition from New Zealand and Australian imports was imminent.

Mr Fisher said such actions were rare, and the burden of proof required under the relevant US law was more rigorous than required by other countries' safeguard provisions. But the Clinton administration had to give effect to the decision of the US International Trade Commission that relief for US sheep farmers was warranted.

"Politics always plays a role on these decisions," he said. "But we have to heed the ruling of an independent authority, the ITC. It is now our job to structure a package that deals with the ruling that was handed down." Trade Minister Lockwood Smith said on Wednesday that signals from Washington were that the US would impose a 9 per cent tariff on current levels of New Zealand and Australian lamb imports, and 40 per cent on anything above that.

Mr Fisher said the US was mindful that any action it took sent signals to the rest of the world. "Every relationship, including the best of marriages, has its pressure points. The aim of Apec is to provide a forum for discussion and maintain forward motion [towards free trade]. A single issue such as lamb should not be viewed as something that will tear Apec asunder."

Other issues discussed during the press conference illustrated bilateral disputes that criss-cross Apec:

* The tussle for the top job at the World Trade Organisation between New Zealand's Mike Moore, backed by the US, and the Thai candidate Supachai Panitchpakdi, who enjoys wide Asian support.

* American steel industry complaints about Japanese imports. Mr Fisher said President Clinton would veto a quota bill now before the Senate.

* The suspension of Sino-American talks on China's accession to the WTO after the bombing of China's embassy in Belgrade.

* The need, as the US sees it, for Japan to deregulate its economy.