Bleating will do no good

By Philippa Stevenson

Between the lines

It is not a pretty sight to see meat industry people standing as bare as their own lamb carcasses on the world stage.

No government protection shields them, though at least for the moment they are covered with indignation.

But the meagre warmth provided by resentment at the United States action to penalise New Zealand lamb in its market will fade. The industry will be left to shiver under the quotas and tariffs of outrageous fortune.

Still, the common enemy did unite the twin arms of the industry. A joint cry of anger at tough US tariffs bridged the gulf of suspicion between farmer and meat company.

Other adversity should also unite them. Farmers are weathering returns among the lowest in 40 years. Meat companies are either in the red or barely out of it.

But within minutes of damning the Yanks, farmers were calculating how much of the tariff burden would be sent their way, and the companies were admitting that meat schedules would be lowered.

Need the struggling sector really bite off more than it can comfortably chew?

In the lead up to the last Gatt round, the Cairns Group of free traders mounted a very persuasive campaign aimed at European consumers who carried the monumental cost of subsidies to their farmers.

Admittedly, it's doubtful the message ever got through to consumers, but it did register with the trade brokers who wrote the World Trade Organisation agreements which now govern slightly freer trade.

That seems every reason to give the strategy another whirl.

American sheep farmers claim that Australasian lamb is dirt cheap, while the transtasman industry takes the view that US lamb is monstrously expensive.

Either way, and especially now the trade sanction deed is done, there is room to move.

Meat exporters could spare farmers and their own bottom line by loading much of the cost of the tariffs on to the American consumer.

And every hiked lamb chop price tag could be part of the free-trade battle by advertising the price being paid for the lamb, and the subsidy going to the American sheep farmer.

The meat industry is not about to vacate the market of the wealthiest consumers in the world which delivers them top dollar for their product, and has huge growth potential.

Neither should the battle for free trade be cast aside.

Or in the words of one of those potentially worst affected, sheep farmer David Bull: "If New Zealand covered itself in tariffs and protection, it would cost New Zealand consumers and farmers.

"This is a setback. We can't let it influence the way we look at trade. Certainly there are powerful political influences opposed to free trade. We have just got to realise these exist, but still push on."