US lamb global safeguard investigation

The United States has effectively launched a safeguard investigation into its lamb imports. This is concerning for the New Zealand red meat sector, although we have been anticipating some form of action and preparing for the possibility.

About the investigation

• The United States Trade Representative (USTR) has written to the US International Trade Commission (ITC) requesting they launch a safeguard investigation into US lamb imports.
• This is in response to claims by the US sheepmeat industry that it has been seriously affected by imports.
• We are expecting formal notification in the next few days.
• The investigation is not specifically directed at New Zealand, but it does include our exports to this key market.
• The investigation will be carried out by the US ITC, which is an independent, non-partisan, quasi-judicial federal agency and will likely take 4-6 months.
• If the ITC determines that there has been serious injury to the US sheepmeat industry, there are a range of “remedies” that could be recommended, including increased tariffs on lamb imports.
• The US took similar safeguard action against New Zealand imports in the late 90s and raised tariffs on our exports that was found to be unjustified by the WTO and removed.

What B+LNZ is doing

• We have been preparing for this eventuality for some time. We’re working across the red meat sector, particularly with the Meat Industry Association.
• We have engaged specialised legal representation in Washington DC to support New Zealand’s involvement in the investigation.
• We’re working closely with New Zealand Government and officials, maintaining regular contact with our US partners.
• There has been a long and valued trading relationship between New Zealand and the US. On the 100-year anniversary of the first shipment of beef and lamb to the US, B+LNZ Board Chair Kate Acland and Meat Industry Association Independent Chair Nathan Guy recently travelled to the US to mark the milestone and meet with key stakeholders.

Our view

• We do not believe there’s a legitimate case. As a sector, we remain confident in our position, that our exports have not caused damage to the US sheep industry. New Zealand’s exports to the US have continued to align with strong demand, which has also driven record prices for American lamb.
• New Zealand lamb complements US production rather than competes with it, filling supply gaps and occupying a distinct place in the market.
• Our farmers produce a high-quality product that is trusted by customers around the world, including in the US. New Zealand lamb exports do not pose any risk to the US domestic sheep sector.
• While our export volumes are modest, the US is one of our most important lamb markets, delivering consistently higher returns. There has been a stable and balanced trading relationship between our countries that began 100 years ago this year.

New Zealand values its collaborative relationship with the US sheep industry, including our shared focus on engaging the next generation of sheep farmers through initiatives such as the Global Sheep Forum Next Generation Programme, which brought young US sheep producers to New Zealand this week.

We will keep farmers updated on this issue.