WTO Panel To Rule On Us Trade Restrictions On Lamb
MEDIA STATEMENT
20 November 1999
FOR IMMEDIATE
RELEASE
WTO PANEL TO RULE ON US TRADE RESTRICTIONS ON LAMB
Trade Minister Lockwood Smith has welcomed the World
Trade Organisation’s (WTO) decision to establish a disputes
settlement panel to consider New Zealand’s case against the
United States lamb safeguard action which restricts imports
of New Zealand lamb.
The United States imposed a tariff
on imports of lamb from New Zealand under the WTO Safeguards
Agreement in July this year, following an investigation by
the United States International Trade Commission (ITC).
The New Zealand Government believes the tariff is
contrary to the rules of the WTO, and initially sought
formal consultations with the US, as required under WTO
rules. The consultations were held in late August but
failed to resolve the issue, and New Zealand has actively
sought a WTO disputes settlement panel to rule on the
matter.
“The establishment of a panel is welcome news,
and means that we should have a final ruling on this case by
the middle of next year,” Dr Smith said.
“The US
Government’s decision to introduce trade restrictions on
lamb imports must be challenged. Acceptance of the US
interpretation of the safeguard action would set an
unfortunate precedent within the WTO, and could lead to the
potential misuse of the WTO rules to restrict fair trade in
goods and services.
“The disputes settlement body has
also approved a request for a panel from Australia on the US
safeguard action, and one panel will be established to hear
both cases. The panel will be made up of three panellists
who will be selected over the next few weeks,” Dr Smith
concluded.
ENDS