990564 Australia Chides U.S. Over Lamb Imports

Canberra - Australian Prime Minister John Howard chided the United States over restrictions on the importation of Australian and New Zealand lamb.

“It is a bit rich to get generic lectures from the American administration, and yet you could have such a crude, old-fashioned device as protection against imports of Australian and New Zealand lamb,” Howard told the Australian Food and Grocery Council.

“It is a reminder that it's still a tough world out there.”

Despite the warnings against trade restrictions, Howard said the Australian economy was overall in the best condition for about 30 years.

He said fundamental reform of the Australian taxation system was still needed to ensure future prosperity.

The governments of Australia and New Zealand have been lobbying fiercely against threatened U.S. curbs on their lamb imports.

New Zealand Prime Minister Jenny Shipley said on Tuesday a protest to the World Trade Organisation (WTO) over the restrictions threat was still on the cards.

Australia and New Zealand supply virtually all U.S. lamb imports.

President Bill Clinton has until June 5 to decide on a U.S. International Trade Commission recommendation that he impose tariffs on the lamb trade, worth some $140 million last year.

American sheep farmers have said a record 70 million pounds, or 32 million kg, of unsubsidised Australasian lamb imported last year threatened their future.

A WTO panel this week delivered a mixed report in which it found Australia had been providing some subsidies on automotive leather.

U.S. officials demanded the subsidy be removed within 90 days.

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