U.S. – Australia Relations

U.S. Restrictions on Australian Lamb Exports

Tokyo, Japan — 8 July 1999

Media release
8 July 1999

The Australian Government is appalled at the decision by the US Administration to introduce restrictions on Australian lamb exports to the United States.

I will convey Australia's deep concern about the decision when I see President Clinton next Monday.

The Government will take steps to assist the Australian lamb industry cope with any damage caused by the US decision. The Government will pay for up to two years the equivalent of half the transaction levy applying to the sale of all lambs in Australia. We will enter into immediate discussions with appropriate representatives of the industry to implement this decision.

The Government will also canvass with lamb processors ways of ensuring that they are not unfairly disadvantaged by the US action.

There is no rational foundation for the American decision. The restrictions will provide no help to US producers of lamb. The decision will make high quality lamb more expensive for US consumers.

There is no justice in the decision. Australian lamb producers have created a market for lamb in the United States, a market which simply did not exist before and a market that US producers had been unable to create for themselves.

Australian lamb producers have developed this market without any support or subsidy from the Australian government. Their only mistake is to have developed a new market, produce high quality product, and sell it at a competitive price.

They are being punished simply for succeeding.

The decision is hypocritical. The US has argued long and loudly that it favours free trade and the opening up in particular of agricultural markets. It has taken a decision which strikes at the credibility of its rhetoric.

Even worse, the decision will damage the prospects of an early and successful WTO trade round. This is a protectionist decision which sends precisely the wrong signal in the lead up to the Seattle Ministerial meeting in November.

The decision is all the more disappointing because Australia is a close ally and friend.

The Australian government is extremely sympathetic to those lamb exporters who will be affected. They have been most unjustly treated, and the government shares their sentiments about the US decision.

In addition to the steps mentioned above, the Australian government will pursue the case vigorously within the WTO. It will initiate a formal request for consultations as soon as possible with the US government under article 12.3 of the WTO Safeguards Agreement. If these consultations do not produce satisfactory results, Australia will take action under WTO disputes settlement procedures.

Tokyo

Original document from www.pm.gov.au.

Last update: Tuesday, 20 November 2007 GMT+1000