Rise in U.S. beef quota marginal

Press, Volume CXI, Issue 32540, 25 February 1971, Page 2

Rise in U.S. beef quota marginal

(N.Z F.A. Mof Correspondent; WASHINGTON, February 23.

New Zealand beef, veal and mutton exports to the United States are expected to rise by only 4m lb this year under the American supply restraint scheme.

Wellington wanted a much higher rise in its supply figure, but after protracted negotiations with administration officials has evidently agreed to limit shipments to the United States to about 234.3 m lb.

An announcement giving details of supply figures for the 1971 calendar year is expected to be made by the United States Department of Agriculture tomorrow. Informed trade sources who made available the likely New Zealand supply figure said they expected Australia to ship 560.8 m lb and the Irish Republic about 69 7m lb.

The total authorised supplies would be about 1160 m lb, they said. This figure is in line with over-all imports last year.

The Australians, whose fight to obtain a higer supply quantity has been no less intense than that of New Zealand, will probably make clear to the United States that the rise of about 12m lb

expected to be granted to them is considered parsimonious. They, like New Zealand, will almost certainly agree to hold supplies to the new level, but will reserve the right to make further representations on the matter.

It is believed that the announcement itself has been prepared in draft form for some time, but that public disclosure of its contents has been delayed because of discussion between the White House and the Agriculture Department on key passages in it

These are believed to be about the manner in which the existing system of an announced level of supply coupled with a “trigger point” is to be suspended Under this method once imports are thought likely to rise above the trigger point the President is required to introduce quotas. He has, however, discretion to suspend the introduction, as he did last June, and this year’s scheme will be introduced under his discretionary powers.

Informed trade sources say it was the Administration’s

intention to announce unalterable limits of supply for the whole year. But, they say, under pressure from the two Tasman countries it agreed to hold regular consultations.

In keeping with the overall level of supply at the same figure as actual imports last year, the Administration has used the gap created by the prohibition on transhipment of supplies across the Canadian border to increase the New Zealand and Australian supply figures.

But in this context the level of Canadian supplies acceptable to the United States will create fresh interest In the past the United States has not imposed limits on the amount of meat, mainly beef, which may enter from across its northern border.