WELLINGTON, March 22 (Reuters) - New Zealand on Wednesday said a World Trade Organisation (WTO) panel had been formed to hear New Zealand and Australia's dispute with the United States over tariffs on lamb.
The United States imposed import levies on New Zealand and Australian lamb imports last July and introduced a US$100 million assistance package for U.S. lamb producers in January.
New Zealand and Australia have taken the case against the U.S. to the WTO's disputes' tribunal, and the formation of the panel marks the first step in hearing that complaint.
"We can now get down to the business of challenging the legality of the action taken against our lamb exports by the United States," New Zealand Trade Minister Jim Sutton said in a statement welcoming the move.
Lamb meat from New Zealand and Australia had accounted for about 95 percent of all lamb imported by the United States, and the two countries have long argued that U.S. producers have lost out by not keeping up with technology.
Panel members are Professor Tommy Koh from Singapore who will chair the panel, Shishir Priyadarshi from India and Germany's Meinhard Hilf.
"Now the hard work begins. We need to convince the panel of out view that the U.S. tariff is contrary to its international obligations," Sutton said.
"American officials have said the U.S. International Trade Commission will conduct a mid-term study based on benchmarks such as market development and production efficiencies to evaluate how the U.S. industry has progressed since the tariffs were introduced," he added.
Sutton estimated the cost of the tariffs to New Zealand producers at about NZ$30 million over the next three years.
Presentations before the panel are scheduled for late May and early July. A final outcome, including the hearing of appeals, is likely to be early next year.:
