Luxton Urges Us Rethink On NZ Lamb

  • John Luxton
Food, Fibre, Biosecurity and Border Control

Food and Fibre Minister John Luxton today criticised the United States Trade Commission's moves to restrict imports of New Zealand lamb through protectionist tariffs and even quotas, labelling them a smoke screen for the real issue.

"The real issue is the American sheep industry's problems are internal not external. New Zealand farmers should not be penalised for being more efficient than their American counterparts."

"Our lamb is an unsubsidised product, freely competing on price and quality. If the US administration wants to help their sheep industry, penalising unsubsidised imports is not the way to go."

Mr Luxton reiterated that the United States industry's decline was caused by lack of internal market development rather than over supply, a fact that was acknowledged by the International Trade Commission (ITC).

"US beef and pork farmers have invested in research and marketing, while the lamb industry has not. Instead it has sought protection and subsidies. New Zealand farmers have the expertise and innovation to grow the total US lamb market. A situation that would be win-win for both New Zealand and US farmers."

New Zealand and Australia, the major lamb suppliers to the US, argued vigorously against the US industry's submission at the ITC hearing. President Clinton now has 60 days to respond.

"If President Clinton were to adopt the recommendations of the ITC, it would be tragic step backwards for a country which espouses free trade. It would also be a great loss for US consumers who would miss out on affordable, delicious New Zealand lamb. The signals it would send to other nations would be both contradictory and regressive, particularly with APEC in New Zealand in September and the next round of the WTO negotiations also to begin later this year."

The Government will be strongly relaying this message to Washington whilst working closely with industry and the Australian Government on the case.

"There's a two month window of opportunity to address the US sheep industry's concerns. We will be doing all we can to avoid trade restrictions that would hurt all concerned," Mr Luxton concluded.