The Australian Government is appalled at the decision by the US Administration
to introduce restrictions on Australian lamb exports to the United
States.
I will convey Australia's deep concern about the decision when I see
President Clinton next Monday.
The Government will take steps to assist the Australian lamb industry
cope with any damage caused by the US decision. The Government will
pay for up to two years the equivalent of half the transaction levy
applying to the sale of all lambs in Australia. We will enter into
immediate discussions with appropriate representatives of the industry
to implement this decision.
The Government will also canvass with lamb processors ways of ensuring
that they are not unfairly disadvantaged by the US action.
There is no rational foundation for the American decision. The restrictions
will provide no help to US producers of lamb. The decision will make
high quality lamb more expensive for US consumers.
There is no justice in the decision. Australian lamb producers have
created a market for lamb in the United States, a market which simply
did not exist before and a market that US producers had been unable
to create for themselves.
Australian lamb producers have developed this market without any support
or subsidy from the Australian government. Their only mistake is to
have developed a new market, produce high quality product, and sell
it at a competitive price.
They are being punished simply for succeeding.
The decision is hypocritical. The US has argued long and loudly that
it favours free trade and the opening up in particular of agricultural
markets. It has taken a decision which strikes at the credibility
of its rhetoric.
Even worse, the decision will damage the prospects of an early and
successful WTO trade round. This is a protectionist decision which
sends precisely the wrong signal in the lead up to the Seattle Ministerial
meeting in November.
The decision is all the more disappointing because Australia is a
close ally and friend.
The Australian government is extremely sympathetic to those lamb exporters
who will be affected. They have been most unjustly treated, and the
government shares their sentiments about the US decision.
In addition to the steps mentioned above, the Australian government
will pursue the case vigorously within the WTO. It will initiate a
formal request for consultations as soon as possible with the US government
under article 12.3 of the WTO Safeguards Agreement. If these consultations
do not produce satisfactory results, Australia will take action under
WTO disputes settlement procedures.
Tokyo