Allegations of dumping lamb rejected

Press, 27 February 1980, Page 2

Allegations of dumping lamb rejected

NZPA Washington The Minister of Overseas Trade (Mr Taiboys) yesterday’ firmly rejected charges by American sheepfarmers that New Zealand was paying, mill ions of dollars to subsidise lamb exports to the United States.

“There is no foundation for this,” Mr Taiboys said. Asked for his reply to allegations that New Zealand was “dumping” lamb in the United States, he said: “You wouldn’t print my response to that.”

a Both charges were laid yesterday by the National Wool Growers’ Association, which said that it was taking formal moves to seek duties on; New Zealand lamb imports ’ and punitive action against New Zealand for ‘-‘dumping.” In spite of Mr Talboys’s firm rebuttal of the charges, he also said: “I regard any efforts by producers in the United States, particularly in an election year, as serious.” The United States is New Zealand’s second-biggest Jamb market, after Britain, ft took 23,757 tonnes in the year to last September. , Lamb and casein — also a mujti-million dollar export trade for,. Ne.w Zealand — are. th.e .only primary, products not 'subject (to import restrictions , in the , United States,- and American producers are stepping up their efforts to introduce barriers 6n’ both products. However, the United States Secretary of Agriculture (Mr Robert Bergland) fold Mr Talboys yesterday that his department was satisfied -that New Zealand posed no threat to American producers' of either lamb of casein. ".- ■

The wool growers’ threat fo . seek ’ duties and antidumping actipn against New Zealand came as a surprise yesterday, in the form of a news-release sent to the New

Zealand Press Association. Neither the New Zealand Government nor the Meat Board had been told, and Mr Talboys did not know of it before he went to see Mr Bergland. Only last Friday the Meat Board’s chairman (Mr Charles Hilgendorf) had said that, after a meeting with United States sheep industry leaders in Texas, he believed he had persuaded them that restrictions against New Zealand imports were neither necessary nor justified.

The main point at issue is a tax rebate the New Zealand Government gives to encourage producers to process lamb cuts before exporting them to the United States. More than 90 per cent of New Zealand’s lamb exports there are processed cuts that qualify for the rebate —•. about 7.7 per cent on f.o.b. value.

Mr Talboys does not believe that this is a price subsidy, but the American sheepfarmers do not see it that way.A big problem for New Zealand in the ensuing debate is that it has not signed the relevant “subsidies code” to an agreement under the Multi-National. Trade Negotiations,- Because of this, .the sheepfarmers have only Ito lay what has b?en ’described as an “intelligent -.formal complaint” to ’ ensure action by the United States Department of Commerce.

They do not have to prove that New Zealand imports have caused their industry to suffer, but they 'would have to' prove injury under a different process of law if New Zealand had signed the agreement. On this, Mr Talboys would say only: “There . will be more discussions among the parties concerned.” “I am optimistic about the outcome,” he said.

Meat Board fears, Page 14