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LOS ANGELES - A US-based animal rights group is claiming a major legal victory over Australian woolgrowers.
People for the Ethical Treatment of Animals (PETA) founder Ingrid Newkirk said Australian Wool Innovation (AWI) has abandoned its two-year-old lawsuit against her group and caved in on a number of key issues in PETA's long-running campaign to ban mulesing.
The lawsuit was dropped after a marathon closed door meeting between lawyers for PETA and AWI in Sydney last night.
AWI, a not-for-profit company owned by Australian woolgrowers, filed the lawsuit in the federal court in Sydney two years ago over PETA's global boycott campaign of mulesed Australian wool.
"The extraordinary amount of money AWI was pouring into this case must have raised eyebrows in a number of places down on the farm," Newkirk told AAP.
However, AWI said it had won a landmark commitment from PETA to stop threatening global retailers over the practice of mulesing until December 31, 2010.
It said the date was significant because it was when the Australian wool industry had agreed to phase out surgical mulesing.
PETA's lawyer, Fraser Shepherd, of Sydney law firm Gilbert and Tobin, said AWI's decision to drop its lawsuit was "a clear lesson to other industries that it is extremely unwise to try to silence their critics by using heavy-handed litigation, rather than sensible dialogue".
PETA said under the terms of the agreement, AWI withdrew its lawsuit and pledged to fast-track the development of genetic alternatives to mulesing.
Mulesing is the controversial farming technique where pieces of skin are cut away from a sheep's behind to prevent maggot infestation.
PETA has described mulesing as cruel.
PETA said AWI also agreed not to block a new labelling system that informs consumers and retailers if wool used in an item comes from a mulesed sheep.
The sole concession PETA says it will make is to temporarily halt its call for a consumer boycott of specific retailers who sell clothing using Australian wool.
However, PETA's boycott of Australian wool and its campaign for a ban on mulesing will continue.
PETA's campaign has influenced retailers including Liz Claiborne, Abercrombie and Fitch, American Eagle, Timberland, Limited Brands and UK-based chains New Look and George to move away from Australian wool.
"Our message is that animal abusers sue PETA at their peril," Newkirk said.
"AWI has wasted millions of dollars of woolgrowers' money, only to find that PETA's call for a boycott of Australian wool is going at full throttle for as long as one lamb has chunks of her rump cut off with shears or one sheep is herded aboard an export death ship."
AWI deputy chief Les Targ said Australian woolgrowers had always put the welfare of their sheep first and business had increased in the past year.
"Since the Federal Court case began, PETA's activities have been curbed and demand for Australian Merino wool has grown, unfettered by the influence of the animal rights movement," Mr Targ said in a statement.
"The last twelve months, the value of wool exports has increased by more than A$700 ($778) million."
The Australian wool industry had already begun activities that would be documented and provided to PETA as part their out-of-court agreement.
"The National Mulesing Accreditation Program (NMAP) will continue to be rolled out, as well as genetic research into bare breech sheep," Mr Targ said.
"There will be a system to identify wool from unmulesed sheep for retailers who want it."
- AAP