MEDIA RELEASE
DEPUTY PRIME MINISTER AND MINISTER FOR TRADE
TIM FISCHER
7 July 1999
Deputy Prime Minister and Minister for Trade, Tim Fischer, expressed outrage at the US decision announced in Washington
today to impose unjustifiable trade restraints against Australia lamb exports.
The decision imposes tariff rate quotas on lamb for the next three years. It will limit total imports of lamb into the
US to 1998 levels of around 32,000 metric tonnes, with only a small growth factor over the next three years. An in-quota
tariff of nine per cent has also been imposed.
'The Prime Minister will be taking this issue up directly with President Clinton next week. I have also instructed the
Department of Foreign Affairs and Trade to seek immediate consultations in the World Trade Organization.'
'This is nothing more than a regrettable cave-in to protectionist pressures and makes a mockery of US claims that they
want fair international trade in agriculture," Mr Fischer said. "It sends a very negative signal about our trade
relationship, the worst in many years'.
Mr Fischer said the one month delay by the US in making the decision reflected Australia's intensive lobbying which has
averted even harsher remedies.
'While trade is likely to continue at existing levels, valued at over $100 million last year, further growth oil which
the industry was banking has now been effectively extinguished. I am very angry that with the Seattle WTO Ministerial
meeting only some six months away, the US is putting in place measures that penalise successful unsubsidised Australian
producers.'
'The US has chosen to ignore that it is quality considerations and poor promotion of the American domestic product
rather than imports which is the cause of US industry decline. The rejection of the Australian/New Zealand industry
offer of up to $1.5 million annually for generic promotion in the US is all the more difficult to fathom in this
regard.'
Mr Fischer said 'this punitive action is also inconsistent with recent increase in lamb prices in the United States
which shows that the threat of injury resulting from imports was nothing but a protectionist ploy.'