A major group of cattle and sheep producers in the United States is calling for major restrictions to be placed on Australian and New Zealand lamb imports into the country.
Key points:
- R-CALF USA estimates three quarters of lamb and mutton eaten in the US comes from overseas
- It claims domestic production in the US has declined by 60 per cent since the early 1990s
- The Australian livestock industry hopes its trade relationship with the US will be strong enough to withstand the campaign
R-CALF USA, which describes itself as the largest body representing producers of cattle and sheep in America, wants tariffs placed on lamb imports to help the local American sheep industry compete.
It launched a petition to the United States trade ambassador to undertake a Global Safeguard Investigation and includes a request that US Congress establishes a phased-in tariff rate quota (TRQ) system over 10 years on imported lamb.
R-CALF USA chief executive Bill Bullard claims that Australian lamb has brought the US sheep industry to its knees and safeguard measures are needed to lift US lamb to 50 per cent market share.
“The United States sheep industry has been decimated over the last two or three decades,” he said.
“We now have the smallest inventory of sheep and lambs in the history of our industry.”
The petition claims that almost three quarters (74 per cent) of lamb and mutton consumed in the US originates from foreign soil.
“There’s been an explosion of imported lamb and mutton primarily from Australia but also from New Zealand,” Mr Bullard said.
The petition claims domestic production in the US has declined by 60 per cent since the early 1990’s.
“When [Australian] exports are destroying our domestic industry we must take action,” Mr Bullard said.
“We’re simply going to fight for our economic and national food security interests here in America.”
Tariffs used under Trump
The US used a (TRQ) system under the former Donald Trump administration.
During 2018, tariffs of between 15 and 50 per cent were placed on solar cells and batteries and imported washing machines.
“The president’s action makes clear again that the Trump administration will always defend American workers, farmers, ranchers, and businesses in this regard,” said an administration statement on January 22, 2018.
R-CALF USA believes it has a strong case for similar protections to be placed on imported lamb.
“That is indeed what we are hoping for here,” Mr Bullard said.
Regional Victorian meat analyst Simon Quilty says that while there is a precedent, it is a “long shot by R-CALF and hopefully it will have no legs”.
“To be honest I think this is wishful thinking,” he said.
“I think our relationship and our trade agreements with America will outshine and be too strong for this to get any momentum.”
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