The World Trade Organisation (WTO) ruling against United States tariff quotas on New Zealand lamb imports has been welcomed by the meat industry.
The WTO Apellate Body this morning upheld an earlier finding of the WTO Dispute Panel that ruled the US tariffs imposed on lamb imports from New Zealand and
Australia breached international trade rules.
"This is excellent news," said executive director of the Meat Industry Association, Brian Lynch.
"It will give great satisfaction to meat companies and producers."
The United States imposed the restrictions for three years from July 1999 after the US International Trade Commission found that New Zealand and Australian lamb imports could seriously damage the US lamb meat industry.
9 per cent tariffs were set for the first 31,851 tonnes of lamb imported from the two countries, with shipments above that level facing 40 per cent tariffs.
New Zealand and Australia complained to the WTO that the tariffs were illegal and the WTO Dispute Panel ruled against the restrictions last December.
However, the US lodged an appeal in January. Today's Apellate Body finding ruled on that appeal.
Mr Lynch estimated the tariffs had cost New Zealand nearly $20 million.
"The US market was worth $180 million last year, which could have well exceeded $200 million if import restrictions had not been in place," he said.
Trade Negotiations Minister Jim Sutton said the ruling, which follows an 18-month battle against the tariffs, was a victory for New Zealand.
"The appellate body's ruling is particularly important for New Zealand's lamb industry as it confirms that US restrictions on our exports are unjustified and must be removed," Mr Sutton said.
The three countries must now agree on a deadline for Washington to change its policies.
Federated Farmers chief executive Tony St. Clair said
New Zealand farmers would be looking to the Bush Administration to implement the findings as quickly as possible.
He said there was enourmous potential in the US market, a market he said could accomodate lamb from New Zealand and America.
"I am confident that there is room for growth in this market for both New Zealand and American lamb."
