Trade Minister Responds To Us Sheep Meat Finding

  • Dr Lockwood Smith
International Trade

Trade Minister Lockwood Smith has already taken up his concerns with today's decision on New Zealand lamb imports by the US International Trade Commission (ITC) at a senior level within the US Administration. The ITC found that lamb imports from New Zealand, which stood at $134 million to the year ended June 1998, are a 'substantial cause of threat of injury' to the US sheep meat industry.

During a meeting with the Deputy Assistant United States Trade Representative in Wellington this morning, Dr. Smith expressed his disappointment with the Commission's finding, and outlined the Government's view on the US sheep meat industry's petition to the ITC.

"We acknowledge the difficulties of the US sheep meat industry, but do not accept that imported lamb is the cause of its decline. There are a number of other factors that must be taken into account when considering the threat of injury", said Dr. Smith.

The 'Safeguards Hearing' will now move into the remedy phase, requiring the ITC to reconvene and consider what remedy, if any, it should recommend to address its findings. The ITC will hear legal submissions on remedies on 25 February 1999, and vote on remedy recommendations in late March. The ITC must make its final report to US President Bill Clinton by 5 April 1999. The President, who will make the final decision on remedies, has 60 days to respond to the report.

"Continued access to US markets for New Zealand lamb is very important, particularly with many sheep farmers struggling with the effects of a drought" Dr. Smith said.

"The Government will put its full weight behind the Meat Industry on this issue. I will be working with my officials, the New Zealand Embassy in Washington, and the New Zealand Meat Industry to develop our next steps with the ITC.

"I will also be calling upon my contacts within the US Administration, particularly my counterparts within the Office of the US Trade Representative. New Zealand meat producers must not be penalised for successfully marketing a quality product to discerning consumers in the US.