Farmers urged to hold back anger

By Philippa Stevenson

Sheep farmers and meat companies are fighting the temptation to vent their outrage directly at President Bill Clinton at September's Apec leaders' meeting after he slammed tough penalties on lamb exports to the United States.

A howl of protest from Auckland streets and rooftops during Apec was the first thought for sheep sector members yesterday when they learned the president had imposed tariffs expected to cost them up to $45 million over three years.

Affco chief executive Ross Townshend said the considerably harsher than expected tariff of 9 per cent applied to all New Zealand and Australian lamb exports was abhorrent.

Unquestionably, the meat industry would back the Government to take action against the US at the World Trade Organisation, he said

"We need to knuckle them at the WTO."

A senior Affco staff member had also suggested that during Apec the company hang a protest banner from its Auckland building opposite the hotel where Mr Clinton is expected to stay.

Mr Townshend ruled out the protest while Federated Farmers rejected an appealing idea of tractor convoys on the streets.

Federated Farmers' meat and wool chairman Chris Lester said he was "absolutely sure the first instinct of New Zealand sheep farmers would be to make their presence felt at Apec".

But it would do no good to drive President Clinton away from a free-trade forum even "when the US talks about free trade it means free trade for the US and to hell with everybody else". Mr Lester said the decision penalised New Zealand.

"The only thing we are guilty of in the American market is success. To the average sheep farmer this amounts to theft. About $25 million [over three years] is going to go direct from sheep farmers balance sheets into the US Treasury. The US sheep farmer is not going to benefit financially."

Waikato Federated Farmers spokesman David Bull feared the US decision could encourage other countries to place restrictions on New Zealand agricultural products.

"For this reason it is important New Zealand does not pull out of Apec but continues to promote trade. And farmers should avoid a knee-jerk reaction of opposing Apec as a result of this decision," he said.

The tariffs, which impact from July 22, decline in the second year to 6 per cent, and in the third to 3 per cent and will apply initially on a quota of 31,851 tonnes - an amount equal to 1998 imports. The quota will be allowed to rise by 85.7 tonnes each year.

Imports above the quota level will attract tariffs of 40 per cent in the first year, 32 per cent in the second year and 24 per cent in the third.

Over the three years, $US100 million in assistance will also go to the American sheep farmers who brought the action.

The American Sheep Industry Association yesterday said the deal was extremely pleasing, but not good enough.

Association president Lorin Moench said: "Frankly, we would have liked to see somewhat higher tariffs, given the very low prices of imported lamb. But the key for us is that every pound of imported lamb will now incur a tariff, which should help firm up domestic prices."