Cattlemen Oppose Australia Beef Quota

June 11, 2002

Australia intends to launch a quota management control system on Australian beef exports to the United States, and perhaps increase the tariff rate quota (TRQ). The National Cattlemen's Beef Association (NCBA) opposes a change in the TRQ proposed by Australia. The proposed change is not part of a multi-lateral negotiation and could create an imbalance in the import market, according to the NCBA.

Subsequent to the Australian announcement, Australian Trade Minister Mark Vaile visited with U.S. Trade Representative Robert Zoellick and requested an increase in market access, suggesting an increase in the TRQ and a reduction in the tariff of 26.5% over the TRQ.

"While the NCBA welcomes Australia's efforts to manage its TRQ through the announced quota management system, we do not support an increase in the 378,214 metric ton TRQ, nor do we support a reduction in the 26.5% tariff over the TRQ," said Chandler Keys, NCBA vice president of public policy.

In comments and letters, NCBA has stated that it "unequivocally opposes this or any other increase in U.S. beef TRQs for Australia or any other country unless negotiated through multi-lateral WTO negotiations.

The United States is currently the least restricted and largest beef import market in the world, purchasing 15% more beef than the second largest importer, Japan. Australia is currently the largest supplier of U.S. beef imports and has by far the largest TRQ at 378,214 metric tons. Australia filled its TRQ for the first time in December 2001, and since that time Australian access to the U.S. beef market has remained virtually unrestricted at current and historical trade volumes.

"Beef markets in many developed countries remain virtually closed to U.S. beef or protected by relatively high tariffs," said Keys. "And, while we support trade liberalization, we will not unilaterally increase access to the U.S. beef market without comparable increases in other markets for U.S. beef."

The NCBA is urging U.S. trade negotiators to take the position that balance can be achieved only through comprehensive multi-lateral WTO negotiations.