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Australian envoy rejects blame for US lamb industry decline in trade inquiry

Ambassador Greg Moriarty tells US International Trade Commission that drought and US policy, not Australian imports, are driving the domestic industry's struggles as the Trump administration weighs tariffs.

By LineZotpaper
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Sources4 outlets
Australia’s ambassador to the United States, Greg Moriarty, has told a US trade inquiry that Australia is not to blame for the long-term decline of the American lamb industry, arguing that domestic factors including drought, falling wool demand and the removal of US wool subsidies are the primary causes, not cheap Australian imports. His testimony comes as the Trump administration considers imposing new tariffs or restrictions on $1.6 billion of Australian sheep meat exports.

Appearing before the US International Trade Commission, Ambassador Moriarty said imports from Australia had filled a supply gap created by the drop in US production, rather than being a substantial cause of it.

“Imports have filled the supply gap created by this decline in domestic production. They are a consequence of reduced US output, not a substantial cause of it,” he told the inquiry.

He warned that any restrictions on lamb imports would hurt US consumers.

“Any action to restrict lamb meat imports would only increase costs for US consumers, reduce product availability and risk reversing the steady growth in US demand for lamb to the detriment of the US industry,” Moriarty said.

Moriarty also argued that Australian lamb exports have helped develop the US sheep industry through genetics partnerships, technology transfer and pest research, contributing to flock productivity.

Meat has been a flashpoint in US-Australia trade relations previously. President Donald Trump imposed tariffs on Australian beef imports earlier this year before removing them to combat high consumer prices. The current inquiry is examining whether Australian lamb imports are injuring the domestic US industry, which some producers have described as being in crisis.

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Analysis

Why This Matters

  • Up to $1.6 billion in Australian sheep meat exports are at risk if the Trump administration imposes tariffs or restrictions.
  • Australian farmers and processors depend heavily on the US market; trade barriers could significantly affect the sector.
  • The outcome will test the broader US-Australia trade relationship, already strained by beef tariff episodes.

Background

The US lamb industry has been in long-term decline, with domestic production falling steadily over recent decades. Parts of the American industry have blamed the proliferation of cheaper Australian imports for their difficulties. Australia is the largest supplier of imported lamb to the United States. The current investigation by the US International Trade Commission was initiated amid pressure from domestic producers seeking protection. Earlier this year, President Trump briefly imposed tariffs on Australian beef before reversing the measure.

Key Perspectives

[Australian government]: The decline in US lamb production is driven by drought, reduced wool demand and the US government's removal of wool subsidies. Australian imports fill a supply gap and help develop the US industry through genetics and technology partnerships. Restrictions would harm US consumers. [US lamb industry / trade protection advocates]: Some US producers argue that influx of cheaper Australian lamb is hurting domestic prices and farm profitability, and have called for import restrictions to address what they describe as a crisis in the sector. [US consumers]: If tariffs or quotas are imposed, American consumers would likely face higher lamb prices and reduced product availability, potentially reversing recent growth in domestic lamb demand.

What to Watch

  • The US International Trade Commission's findings and recommendation on whether Australian imports are causing injury.
  • Any decision by the Trump administration to impose tariffs, quotas, or other restrictions on Australian lamb imports.
  • Potential diplomatic or retaliatory moves by Australia if trade barriers are erected.

Sources

Zotpaper

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