U.S. beef quota talks begin

Press, Volume CX, Issue 32461, 23 November 1970, Page 2

U.S. beef quota talks begin

<N.Z.P.A. staff Correspondent) WASHINGTON, November 22.

The United States has begun talks with overseas suppliers of the American beef market about the level of shipments to be permitted next year.

It is understood that both New Zealand and Australia have been involved in discussions but that the Administration is not yet ready to announce any firm limitation figures.

Talks are reported to be continuing with Canada but indications are that Ottawa intends to resist Washington’s attempts to have it accept a limit on quantities sent across the border. New Zealand and Australia oppose the introduction by the United States of stringent quota levels and it is expected that discussions will centre, initially at least, on their willingness to accept an

obligation to hold down supplies to agreed levels. Total American imports of beef and veal are expected to reach about 1160 m lb this year. The figure is 162 m lb above the estimate made by the United States Department of Agriculture at the beginning of the year.

New Zealand agreed to hold its exports this year to 229.3 m lb, and Australia to send no more than 548 m lb. The American cattlemen’s lobby wants total imports restricted to no more than 1061.5 m lb and is strongly opposed to any rise in the level of imports from the two Tasman countries.

Wellington and Canberra, however, are keen to send higher quantities. Latin American nations such as Panama and Honduras want to send more than they have in 1970 and Argentina also is pressing for a greater supply agreement. MADE HARDER

Canada’s refusal to accept any form of restrictions on the flow of beef across its borders into the United States has complicated the question for the Agriculture Department. It apparently felt that if it could get Canada to agree to the establishment of a North American market, with Ottawa and Washington acting in accord on meat imports, its task of working out supply levels acceptable to the Administration would be much easier. Because of strong pressures being imposed internally for levels to be held down, and overseas suppliers seeking greater freedom of access, officials find themselves faced with a difficult balancing exercise. HOPEFUL SIGN From New Zealand's point of view the most encouraging sign recently was the smile given by Sir John Ormond, chairman of the Meat Board, after he discussed the issue

with State and Agriculture Department officials. Sir John Ormond would not say what he had been told, but said: “I don’t look too unhappy, do I.” The less hopeful aspect is that discontent among the farmers with the Nixon Administration is expected to lead to a show of sympathy by the White House for their problems. By holding imports about present levels the Administration could at least claim to have given priority to the demands of the cattlemen.