Media release

Australian Minister for Trade, Mark Vaile

Tuesday, November 14, 2000

Australia to Press for Removal of Restrictions at Mid-Term US Lamb Hearings

Trade Minister, Mark Vaile, today said Australia would press for an end to the tariff-quotas on lamb at a US International Trade Commission (ITC) hearing in Washington this Thursday (November 16).

The ITC is currently conducting its mid term review of the restrictions placed on lamb, and is considering whether the US domestic industry has taken advantage of the so-called safeguards put in place to allow it to adjust to import competition. 

Mr Vaile said the ITC review was a domestic process separate from the WTO dispute panel, whose interim report found in favour of Australia's and New Zealand's complaint that the US restrictions were unjustified.

On July 22, 1999, President Clinton imposed harsh restrictions on imports of Australian and NZ lamb including: a 9% tariff on all imports up to an annual quota of 31,851 tonnes; a 40% tariff on above-quota imports; a progressive reduction of the in-quota tariff to 6% in July 2000, then 3% in July 2001; and a progressive reduction of the above-quota tariff to 32% in July 2000 and 24% in July 2001.

Mr Vaile said the Federal Government had lodged a pre-hearing submission with the ITC last week arguing for the immediate end of the unfair restrictions imposed on unsubsidised exports of Australian lamb.  He praised the continued close cooperation of the Australian lamb industry which had also lodged a submission.

Mr Vaile said Australia's case at the ITC would be put by Ambassador to the US, Michael Thawley, and was the next important step in pressing the case for the removal of the unfair US measures.

"From the outset the Federal Government has maintained that the US restrictions were unfair and inconsistent with WTO rules.  It's increasingly clear the US domestic industry is either unable or unwilling to increase its own competitiveness.  Continuation of the import restrictions is only harming unsubsidised Australian and New Zealand exporters, importers, retailers and consumers.''

Mr Vaile stressed the Federal Government would not back off from its efforts to have this unjustified trade barrier removed as soon as possible.

Contact: Bruce Mills 02 6277 7420

Local Date: Friday, 21-Nov-2008 02:30:48 EST