WTO to check on US lamb tariffs

WELLINGTON - A World Trade Organisation panel will investigate the legality of higher United States' tariffs imposed on lamb imported from New Zealand and Australia.

The steeper tariffs went into force on July 22, to protect domestic lamb producers threatened by imports from New Zealand and Australia, which together account for 95 per cent of US lamb imports.

The ranchers had complained that previous tariffs of less than 1 per cent were too low to protect them, but the US Government's response enraged New Zealand and Australian farmers and politicians.

The current investigation will be the second time the request has been considered by the WTO's dispute settlement body. On the first occasion the US blocked the action.

The panel has six months to report back, and its decision can be appealed.

New Zealand Trade Minister Lockwood Smith says the New Zealand Government believes the tariffs are contrary to the rules of the WTO.

Formal consultations were held with the US in August but these failed to resolve the matter.

"Acceptance of the US interpretation of the safeguard action would set an unfortunate precedent within the WTO, and could lead to the potential misuse of the WTO rules to restrict fair trade in goods and services."

He says the review will be conducted by three panellists who will be selected over the next few weeks.
- NZPA