THE PRESS WEDNESDAY, FEBRUARY 27, 1980. Lamb exports to U.S.

Press, 27 February 1980, Page 24

THE PRESS WEDNESDAY, FEBRUARY 27, 1980. Lamb exports to U.S.

The threat to New Zealand lamb exports to the United States that the Minister of Foreign Affairs, Mr Talboys, has come up against in Washington is'not new, though the present slant is different. A bill is before Congress which seeks to limit the tonnages of lamb imported into the United States. The bill has been there since 1979 but little action has been taken on it. The present threat, yet to be translated into action, is that American sheep farmers will seek duties and anti-dumping measures against New Zealand lamb imports.

When the chairman of the Meat Board, Mr C. Hilgendorf, returned from a meeting in the United States recently, he was reasonably optimistic about the attitude of American sheep farmers on 'the question of attempts to restrict lamb imports. Nevertheless, both the movement to restrict tonnages and the plans to seek duties represent threats to the biggest lamb market that New Zealand has outside Britain though its place may be overtaken soon by Iran. In the year which ended in June, 1979, New Zealand sold lamb worth more than $27 million to the United States.

American sheep flocks have declined markedly over the last few years but have been improving again recently. American, Australian, and New Zealand lamb producers have been co-operating to develop the market in an orderly way. Yet American .sheepfarmers see New Zealand lamb as a threat to their own production. An election year in the United States would be a touchy time in which to ignore such legislation or demands for protection. The threat of duties may be the more serious. Duties can

usually be invoked with rather less fuss than passing legislation. New Zealand is exporting much of its lamb to the United States in cuts ready for retailing. The accusation against New Zealand is that, by applying export incentives to cut meat, New Zealand is subsidising its lamb exports. Since New Zealand agriculture is constantly facing competition from subsidised agricultural p v ’uce, particularly in the Europea. a Economic Community, the question of subsidies is embarrassing to the country’s overall trading position.

How much of the lamb sold to the United States is eligible for an export incentive payment of one kind or another is a debated point. A report from the New Zealand Press Association staff correspondent in the United States cautiously cites 90 per cent. That is a figure unlikely to be accepted by the New Zealand Government, which would place it about 58 per cent. The argument being used in the United States will be difficult to defeat.

The fact that New Zealand is co-operating in developing the market and that it would claim that it is not hurting the American producer may not be points that weigh heavily with American sheepfarmers’ organisations. World demand for New Zealand lamb at present outstrips New Zealand’s capacity to produce. This is no reason for neglecting the potential of the American market or for giving up a battle for free entry of meat. The Meat Export Development . Company has built up the North American market with care and skill over many years. Its success is not to be thrown away lightly.