Truss Bungling Could Threaten Future US Beef Trade

Media Statement - 15 July 2002

Complaints from US Beef Importers about confusion over the Howard Government's mismanagement of the US Beef Quota could damage efforts to increase future access for Australian beef producers into the US market.

The complaint detailed in a letter from the Meat Importers Council of America (MICA) to the department of Agriculture, Fisheries and Forestry (AFFA) further highlights Mr Truss' ineptitude in managing the US Beef Quota issue.

The letter states that US importers are being placed in an "untenable position" by the arrangements to manage Australian beef already in transit to the US.

The situation has arisen because Mr Truss earlier indicated that the most appropriate measure to minimise the impact of shipments in excess of individual processor's probable quota allocations was to take the over-shipped quantity from the total amount to be allocated through discretionary tonnage arrangements developed by a Senate committee. According to the Minister's press release of 27 June 2002, the Order determining this was to come into effect today.

It would appear that Mr Truss has now arbitrarily and retrospectively set the effective date of the Order to 15 May 2002. This means that some meat currently on its way to the US is now out of quota, and will therefore attract a tariff of 26.4%.

Mr Truss' plan also means that meat shipped after 15 May by an exporter who has already filled their quota under the Minister's model, must seek a certificate to have the meat allocated to the exporter through the discretionary tonnage arrangements.

There is no certainty that such a certificate will be issued given that demand for discretionary tonnage will be far in excess of that available.

MICA seeks a guarantee from Mr Truss' department that "certificates will be made available for all product that was shipped from Australia prior to the publication of the Order".

The letter also states: "As you are aware, MICA has always supported the early introduction of a scheme and I am sure you will agree that importers should not be penalised by the excessive delays that have occurred in putting this scheme in place".

With his serial bungling, Mr Truss has not only managed to divide the Australian beef industry, destroy hundreds of regional jobs and threaten thousands more, but he is now damaging our international trade reputation with, of all places, the US.

Clearly, it would be fair to expect that Mr Truss would be doing all he can to work with US importers and government to increase the overall size of our market access to the US.

But it's unclear how Mr Truss, by placing the finances of US Importers at risk can enhance Australia's lobbying for extra market share. Especially when MICA are likely to be consulted by the US Government on any move to increase the US market share for Australian beef producers.

I call on Mr Truss to urgently sort this matter out, to revert to earlier arrangements agreed with the industry, and to actively work towards increasing our share of the US market.