Australian lamb exporters are about to get a nasty taste of
American trade policy at its worst...
an unmistakably protectionist wave has enveloped the
Congress and the Clinton Administration.
The US is involved in trade skirmishes with most of its
trading partners, on issues from steel to beef to magazines.
And President Bill Clinton is expected to announce within
days that he will introduce tariffs on Australian and New
Zealand lamb...
It isn't just the trade deficit, approaching $US300 billion
($452 billion) a year, that is driving the protectionist push.
It's the backlash from globalisation, in combination with a
very weak President...
The US International Trade Commission has judged that
Australian and New Zealand lamb imports have grown so
fast that they pose the threat of substantial injury to the
industry, and all six ITC members have recommended
tariffs or protection of some sort. Thirty-one senators,
from farming States such as Montana, Idaho, the Dakotas,
Colorado, New Mexico, Texas, California and Wyoming,
both Republican and Democrats, signed a letter urging the
US Trade Representative, Charlene Barshefsky, to impose
harsh tariffs on lamb imports. Some of the senators were
ostensibly free traders, but they are up for election in 2000.
If the Clinton Administration were not so weak it would
have resisted their demands. But if it does the right thing
for some mountain State senators who want to help their
local farmers, those senators might back the
Administration on getting China into the World Trade
Organisation.
And let's not forget that the campaign of Al Gore, the
front-runner for the Democratic presidential nomination
which is looking decidedly anaemic. To help him, the
President's political advisers want to blunt the protectionist
message of anti-free traders such as right-wing
Republican populist presidential candidate Pat Buchanan.
The idea is to be seen to be looking after the losers from
global competition, and using every available legal
mechanism to fight trade that hurts too much. Through all
this the Democratic Party's traditional support base, the
labour movement, is still suspicious of trade, and does not
believe the evidence that trade creates jobs...
Australia is furious with the Clinton Administration for
taking this approach to the US sheep industry's problems,
but realistically, it has very limited leverage.
It has threatened to bring a case to the WTO.
This could embarrass the US, which is currently attacking
Europe over not allowing America's genetically modified
food and hormone-treated beef into its market...
[WEBNOTE] - What more can I say than: GO PAT GO!!!!!!!