October 27, 2000

The U.S. Trade Representative's office confirmed the United States lost a preliminary ruling in a case involving import curbs on Australian and New Zealand lamb, REUTERS reports.

Import quotas were imposed in 1999 on lamb imports under a section of U.S. trade law that allows temporary protection in return for an industry adjustment plan. The law, usually referred to as "Section 201," is used relatively rarely. Unlike better-known anti-dumping or countervailing duty laws, Section 201 can be used to restrain imports even if they are not subsidized or dumped.

REUTERS quoted a USTR spokeswoman as saying a World Trade Organization panel "found some violations of WTO rules" in the U.S. action.