U.S., Australia Agree on Lamb Dispute

August 17, 2001

Australian officials say they have agreed to a U.S. request to allow more time for negotiations to resolve the lamb dispute, according to Trade Minister Mark Vaile. "Australia and the U.S. will intensify negotiations over the next two weeks on the time frame for elimination of the tariff quota on Australian lamb exports," Vaile said.

Under the agreement Australia has reserved the right to seek arbitration and the United States has committed to continue discussions until Aug. 31 on a time frame to remove its measures on Australian exports.

Vaile said Australia and the United States also agreed that any later arbitration process would conclude by Sept. 30, the same date that arbitration proceedings would have concluded if initiated on Aug. 14. This means Australia loses no more time even if it decides on arbitration at a later date.

"Australia has always maintained that constructive negotiation would resolve the lamb issue after the World Trade Organization ruling more quickly than an adversarial or litigious approach. This remains our position," Vaile said. "While I understand and sympathize with industry frustration at the time taken to resolve this issue, I am committed to having the US tariff quota removed and obtaining for Australian lamb producers the justice provided by the WTO's ruling."