US group abandons legal action on higher tariffs for NZ lamb

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A second group is pressing on with plans to lobby the US government to introduce higher tariffs on imported sheepmeat from Australia and New Zealand.
Photo: 123rf.com

A US lobby group has backed down on its call for greater import tariffs on New Zealand lamb.

The American Sheep Industry Association says it will not take further costly legal action to enforce tariffs on Australian and New Zealand sheepmeat entering US borders.

The industry body started investigating import activity by Australasian exporters in April last year, amid concerns cheaper imports were decimating domestic sheepmeat production.

But its legal counsel advised against filing a trade case into the imports from Australia and New Zealand, as a victory would “provide minimal relief” when factoring in estimated legal costs of more than $US1 million ($NZ1.6m), according to the ASI’s website. ]

Its president Brad Boner said it would continue to monitor closely the ongoing issue of lamb imports.

Todd McClay
Photo: RNZ / Angus Dreaver

“Two things I think we need to do, [is] not be shy about telling them we have a lawyer on retainer and we’re going to continue to watch this like a hawk,” Boner said.

“And continue to make sure that if they ever stub their toe and give us a window, we’ll be ready.”

New Zealand Trade and Agriculture Minister Todd McClay said he was pleased with the result, and was “not worried at all” about the increased scrutiny on import activity.

“We take our trade obligations extremely seriously. Our exporters are within their rules, and live by the letter of them,” he said.

“But one of the challenges, I suppose, is that the US sheepmeat producers have said they’re losing market share. That’s because demand for high quality lamb in the US market is growing very, very quickly, and they just can’t meet that extra consumption demand.

“New Zealanders are pretty well placed to do that, often in cooperation with them [US producers].”

McClay said it was good news Americans wanted to eat New Zealand lamb – and growth opportunities remained in that market.

New Zealand lamb exported to the US currently faces tariff rates of between 0.7 and 2.8 cents depending on the product.

New Zealand industry still faces opposition

Lobby group R-CALF USA is full steam ahead with its agenda to lobby the US government to introduce higher tariffs on imported sheepmeat from Australia and New Zealand.

It is petitioning the United States trade ambassador – calling on her to slow imports of lamb.

Chief executive Bill Bullard said it was still waiting for a decision from the trade ambassador, but in the meantime they were drumming up support for their cause.

“We have over 20 resolutions passed by county commissioners in support of our petition and we continue to meet with members of Congress.

“We’ve had 14 members of Congress from eight states and from both sides of the political aisle that have written to the trade ambassador, urging her to favourably consider our request.”

He said the group existed to represent the interests of sheep and cattle producers.

“They’re experiencing an untenable situation where imports are essentially causing the destruction and demise of our industry.”

R-CALF USA is hoping this year’s US election will further support their call with former US president Donald Trump, who’s favourite to secure the Republican nomination, saying he would impose a 10 percent tariff on all imported goods.

Bullard said R-CALF was hoping to make the call for higher tariffs and a slowdown on imports an election issue.

“We believe Congress needs to look more favourably at the use of tariffs and tariff rate quotas as a legitimate means of preserving vital domestic industries including the sheep and cattle industries.”

Beef and Lamb New Zealand chief executive Sam McIvor said it will continue to lobby on behalf of the New Zealand industry in Washington.

“What we’re doing is presenting the fact that we’re a key partner in the US industry – consumers in the US don’t eat much lamb and alongside the domestic industry we’ve made huge investment to increase that.”