Export struggle predicted in U.S.

Press, 12 February 1979, Page 12

Export struggle predicted in U.S.

NZPA Washington New Zealand’s leading trade official in North America, Mr D. Wailker, has predicted a hard struggle this year to protect New Zealand’s key export markets against two major protectionist threats. Beef producers already have made the first moves aimed at winning presidential approval of what New Zealand sees as antibeef imports legislation.

And sheep producer? are expected to push for control of lamb imports which are at present unregulated. “We can see another heavy year ahead," the New Zealand Embassy Minister (Commercial), Mr Walker said. “Our view is that cattlemen will continue their push for protective legislation, and it seems the sheep industry will see some degree of protection.”

Mr Walker has an up-to-date personal assessment of the attitudes of cattle and sheep producers, having just returned from the annual conferences of the two industries. He said cattiemen are much more relaxed about imports this year than last, because of the present high prices, which are forecast to continue for two or three years. Nevertheless, he said,

the National Cattlemen’s Association is committed to pursuing beef imports legislation again this year. Such legislation was approved by Congress in 1978, but vetoed by President Carter on the grounds that it abolished his authority to increase imports if he thought such action warranted. Carter told cattlemen he would work with the industry to pass a bill tying imports to Amercian production ups and downs — the so-called counter-cycli-cal formula — but Would not stand for the removal of his discretionary authority on imports. Mr Walker noted that the cattlemen’s convention passed a resolution to reintroduce legislation this year to amend the present Meat Import Act. The resolution is identical to last year’s, apart from one word which watered down the 1978 version.

This year the cattlemen will seek “limitations” on the President’s authority to suspend quotas and increase imports. Last year the word was “elimination.” The cattlemen’s executive is expected to meet next month to decide its strategy on imports legislation.

Several imports bills already have been introduced by sympathetic congressmen in Washington, including one by Senator L. Bentsen of Texas.

Bentsen's bill was passed by the Senate last year and is tipped to be the “peg” on which cattlemen will hang their case this year. Woolgrowers and lamb breeders, upset by growing imports of Australian chilled lamb which competes directly against fresh domestic lamb, decided at their convention to press for quotas on lamb imports. Such legislation, if enacted, could have serious consequences for New Zealand, which ships large amounts of frozen lamb to the United States market.

Sheepmen do not have nearly the same “clout” as cattlemen in Congress but they may be able to persuade western representatives to introduce legislation.

Whether it could muster enough support to be written into the law is another question.

Mr Walker said the sheep industry might also decide that it would be better off putting its time and money into other areas of concern. But New Zealand will have to take seriously the potential threat against its lucrative lamb market. New Zealand will renew its diplomatic battle against any beef imports legislation this year and will be alert to possible moves against imports by the sheep industry, according to Mr Walker.