990567 New Zealand Turns Up Heat in USA Lamb Fight

Wellington, New Zealand - New Zealand Prime Minister Jenny Shipley said that a protest to the World Trade Organization (WTO) over threatened U.S. lamb import restrictions was still “on the cards.”

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

American sheep farmers have said a record 70 million pounds of unsubsidized Australian lamb imported last year posed a threat to their futures.

“Obviously, we don't want to preempt the president's decision. It may still be favorable to New Zealand, but there are still remedies available to us if it is not,” Shipley said, adding the next 10 days would be critical

“New Zealand is going to defend its right to trade freely. This is a very valuable market,” Shipley told a media briefing.

New Zealand Meat Board chairman John Acland met with Shipley to urge her to intervene directly. He has said he believed the lamb issue was seen by some in Washington as a precedent for larger trade battles with Japan and Europe on issues such as steel imports.

Australia threatened to take any unfavorable decision to the WTO disputes procedure.

New Zealand's Trade Minister Lockwood Smith, currently in Paris, said New Zealand and Australia were united against the threat of trade restrictions on their U.S. lamb exports.

Smith met his Australian counterpart Tim Fischer to discuss the threat of trade restrictions. “Fischer and I will raise our concerns with U.S. Trade Representative Charlene Barshefsky at the meeting of the 'Friends of the Round' in Budapest later this week,” Smith said in a statement.

“We will continue to fight trade restrictions against our lamb imports right up to the wire.”

Shipley said Barshefsky was responsible for recommending to Clinton appropriate action on the lamb issue and she expected Smith to meet with the Barshefsky within three days.

“I'll wait and see what that advice is before I take any further decisions,” she said.

The New Zealand meat industry maintains it is facing penalties for its efficiency. In New Zealand, 17,000 farmers raise 47 million sheep, compared with 77,000 American farmers raising seven million sheep.

An Australian and New Zealand offer of $1.5 million to help fund lamb marketing campaigns was rejected by U.S. sheepmeat industry representatives earlier this month.

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