December 20, 2007
US pork group urges Australia not to limit pork imports
The National Pork Producers Council is urging the Australian government not to place restrictions on imports of US pork to further protect Australia's pork industry.
Citing the US-Australia Free Trade Agreement, which became effective January 1, 2005, NPPC said the US pork industry should be excluded from any protectionist action taken by Australia.
Under pressure from Australian pork groups and after a two-month investigation, the Australian government's Productivity Commission is set to issue a report on the condition of the country's pork industry, which may include a recommendation that measures against pork imports be taken to protect it.
The World Trade Organization's Agreement on Safeguards allows WTO member countries to impose for up to 200 days provisional safeguard measures if surge of imports causes or threatens to cause serious material injury to a domestic industry."
Australian pork producers are seeking government protection from pork imports in the form of tariffs of up to 62 percent despite the fact that their representative organization, Australia Pork Limited, admitted to the Productivity Commission that substantial part of the Australian pork industry is not globally competitive.
NPPC pointed out that the economic woes being suffered by the Australian pork industry are being experienced by pork producers around the world. The dynamics of the hog cycle and high feed costs due to drought and renewable fuels policy have put a cost squeeze on pork producers, said the organization.
US pork imports are not the cause of Australia's problems, NPPC president Jill Appell said, stating the situation in Australia is "not special or unique".
The US pork industry only gained access to the Australian market January 1, 2005, when the US-Australia FTA became effective. Australia now is one of the top destinations for US pork, with exports topping $65 million in the first nine months of 2007. Estimates were that the FTA would generate $50 million in new US pork sales each year.
Australia's Productivity Commission in mid-October began its investigation and was asked to issue an accelerated report of its findings by December 14. A final report is due by the end of March 2008.
