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Beef + Lamb NZ chair Kate Acland.
As expected, the US has launched a safeguard investigation into lamb imports, a move that could impact New Zealand sheepmeat returns.
The US Trade Representative has formally requested the International Trade Commission launch a safeguard investigation into US lamb imports.
This investigation is not specifically directed at New Zealand and will be carried out by the US International Trade Commission, an independent non-partisan, quasi-judicial federal agency. The investigation is expected to take 4-6 months.
New Zealand lamb earns an average of $21.99 per kilogram in the US, compared to New Zealand's global average of $14/kg. Any restrictions on sheepmeat exports would lead to displacement of product to lower value markets.
"While the move is disappointing, the sector had been anticipating some form of action and preparing for this possibility," says Kate Acland, chair of Beef + Lamb New Zealand.
Acland says the sector will be working hard to ensure New Zealand's position is clearly understood.
"We are working closely with our Government and officials, maintaining regular contact with New Zealand's US partners and have engaged legal representation in Washington D.C. to support New Zealand's involvement in the investigation.
"New Zealand has a stable and balanced trading relationship that began 100 years ago."
Nathan Guy, independent chair of the Meat Industry Association, said the sector remained confident in its position that New Zealand's exports have not caused damage, nor pose any threat to the US sheep industry.
"Our sector produces a high-quality product that is trusted by customers around the world, including the US.
"New Zealand lamb complements US production rather than competes with it, filling supply gaps and occupying a distinct place in the market. We maintain that any action targeting New Zealand lamb is unjustified."
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