US talking tough on trade

By John Armstrong

political editor

Tetchy senior American trade officials yesterday rubbished claims that the United States was protectionist, saying it was doing countries such as New Zealand a favour by importing so many goods.

The ticking-off from Deputy Trade Representatives Richard Fisher and Susan Esserman followed last-minute lobbying by New Zealand and Australian ministers who are trying to stave off a punishing new lamb tariff.

After talks on the dispute at the Carlton Hotel in Auckland, the Minister for International Trade, Lockwood Smith, warned that the United States was risking the perception that it "talks the talk but does not walk the walk" when it comes to opening its market.

But the two American officials - in Auckland for this week's Apec Trade Ministers' meeting and feeling the local heat over lamb - rejected suggestions that their country was becoming more protectionist.

They said the United States' low tariffs and its voracious appetite for consumer goods had helped to pull Asia out of last year's recession.

"We ask you to bear in mind when you criticise us for protectionism how open, how vast, how huge our market is for the output of New Zealand and Australia," Mr Fisher told reporters after a volley of questions.

"What would you prefer? Slower economic growth? More closed markets? Higher tariffs and nontariff barriers?"

He said the United States was now New Zealand's second-largest export market and New Zealand lamb exports to the US had doubled since 1995.

Susan Esserman also said the United States had a huge deficit in imports over exports with the rest of the world.

But New Zealand argues that in its case the balance is heavily in the Americans' favour.

Dr Smith said a new lamb tariff would send the wrong signal to developing countries, which would simply reply, "See what we told you," rather than lower their own import barriers.

Despite the argy-bargy, New Zealand and the United States want to restore momentum on easing regional trade barriers before world trade talks this year, and do not want the lamb row to overshadow this week's Apec meeting.

For that reason - and to avoid a diplomatic snub to New Zealand - US President Bill Clinton is unlikely to reveal details of the lamb tariff until the Trade Ministers end their two-day meeting tomorrow night.

Susan Esserman said the delay reflected the issue's importance.

Mr Fisher summed up the lamb row as an "irritant" that should have no impact on Apec's wider trade liberalisation agenda.

The pair gave no ground during yesterday's lamb talks with Dr Smith, Federated Farmers' president Malcolm Bailey and Australian Trade Minister Tim Fischer.

Dr Smith said the Americans had told him that Mr Clinton was "going through anguish" over the lamb decision, which, after arguments in the Washington bureaucracy, was now on his desk for him to sort out.

At stake is a proposal to impose a 9 per cent tariff on existing lamb imports and a 40 per cent tariff on any extra amounts - which would cost New Zealand producers $11 million next year.