Joamb trade threat

Press, 30 March 1981, Page 1

Joamb trade threat

NZPA Washington With a continuing threat to casein, New Zealand has another fight with- agricultural protectionist forces in the United States Congress on its hands, this time over lamb.

A bill which could cut 'New Zealand’s lamb sales in the United States by a quarter was introduced in ■•the' House of Representa- , tives last week and a similar bill will be introduced in the senate today. It'-is the second time congressmen from Texas; America’s largest sheepproducing state, have tried ■ to cut. lamb imports. Earlier, bills failed to get anywhere- in the last Congress-: This time,, with a Republican ■" administration and Republican control of •the-i Senate they feel their chances are ■ better. New

Zealand, whose lamb trade with the United States was worth more than $3O million last year, is the biggest overseas supplier by far.

A Republican representative, Mr Tom Loeffler, put the bill that would set a .ceiling on lamb imports of 31 million pounds a year, or 12 per cent of the previous year’s domestic production, whichever is the smaller. His bill had four co-sponsors. Senator John Tower, also from Texas, plans to introduce a similar bill in the Senate today. The bill was immediately dubbed “unnecessary, unrealistic, and unworkable,” by Mr Graeme Lindsay, executive vicepresident of the New Zealand ; lamb company in New York.

Mr Lindsay said initial analysis.'; - indicated that

New Zealand could suffer a cut of up to 25 per cent in its sales in the United States if the bill went through. Neither hili is likely to receive fast attention in a Congress preoccupied with President Reagan’s drive to balance the economy. However, New Zealand officials say that as a reflection of agricultural protectionist sentiment in the new Congress the move must be taken seriously.

The bills would put up the import limit from 24.5 million pounds to 31 million pounds. The United States’ only other significant overseas lamb supplier is Australia, but its share of the trade varies significantly year to year. Of total imports of 32.9 million pounds in 1980, New Zealand supplied 28.7 million pounds.