Lamb dispute clouds US-Aust trade

The WTO has ruled that U.S. tariffs on lamb imports are illegal

In this story: U.S. raises concerns over quarantine procedures Quota imposed in July 1999 RELATED SITES

SYDNEY, Australia -- Australian lamb producers demanded that the U.S. immediately remove tariffs on lamb imports Wednesday after the World Trade Organization declared them illegal.

Producers welcomed a decision by the WTO appeals panel to dismiss a U.S. appeal against a ruling last October that U.S. restraints on imported lamb breached WTO rules.

But they reacted strongly to statements by the U.S. sheep industry that it would pursue legal action that could draw out implementation of the decision and allow restrictions to remain for many months.

"President Bush and his lackeys have to deliver on their free trade rhetoric because Australian farmers are fed up with being unfairly treated," National Farmers Federation president Ian Donges said in a statement.

"The NFF, in conjunction with the federal government, will defend the right of Australian farmers to have access to the U.S. market without restrictions," he said.

In New Zealand, representatives of the Meat industry Association and Farmers Federation also welcomed the WTO ruling and urged its speedy acceptance by the U.S.

U.S. raises concerns over quarantine procedures

The U.S. has launched its own free trade attack on Australia via its latest Super 301 report, which lists the trade issues of greatest concern to the Bush administration.

It says it has serious concerns about Australia's quarantine procedures for food imports such as apples, citrus, table grapes and poultry.

The clash over food imports clouds the prospects for an early start on a proposed free trade agreement between Australia and the U.S.

A spokesman for Trade Minister Mark Vaile said the government expected that agricultural issues would form part of talks on any such agreement.

But he said there was no timetable for negotiations on an agreement, which was raised by Vaile during a visit to Washington in April, when he met the U.S. trade representative Robert Zoellick.

Quota imposed in July 1999

On the lamb issue, a three-year tariff-rate quota was imposed by the United States in July 1999 after the U.S. International Trade Commission unanimously ruled a surge in lamb imports posed a serious threat to American producers.

Australia and New Zealand, the main competitors for the U.S. lamb meat market, have argued that the U.S. industry's troubles are more the result of inefficient production and poor marketing efforts.

The Australian sheepmeat industry also criticized statements by the American Sheep Industry Association which described the WTO decision as wrong and which called on the Bush administration to send the case back to the WTO.

The American association said it could be "a number of months" before the U.S. implemented the WTO appellate body's ruling against the U.S. tariff-rate quota.

Sheepmeat Council of Australia executive director Peter Klein told reporters on Wednesday that the U.S. had used every opportunity to prolong its barriers on lamb imports.

"It has the potential to go on a little while longer (but) I believe strongly that we will have a result this year," he said.

Reuters contributed to this report.

National Farmers Federation
Office of the U.S. Trade Representative
World Trade Organization

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.