Australia said on Thursday it was ”very disappointed” by South Africa’s decision to increase tariffs on sheep meat imports and was investigating whether the move was in breach of World Trade Organisation rules.
A representative for Trade Minister, Mark Vaile, said the increase nearly doubled the tariff South Africa applied to Australian mutton exports to two rand (US$0,20) a kilogram, or 40% of the meat’s value, effective June 14.
”It will have severe consequences for Australia’s sheep meat and there are also concerns that the decision to introduce a new specific tariff may increase the effective rate of tariffs for the import of red meat,” the representative said.
Australia exported about A$31-million (US$17,5 million) worth of sheep meat to South Africa in 2001, he said.
Vaile has written to South African Trade and Industry Minister, Alec Erwin, to complain about the move and the two ministers were expected to discuss the issue during a telephone call on Thursday, the representative said.
”(Vaile) has asked officials in the department of foreign affairs and trade to examine closely any WTO inconsistencies on the South African decision,” the representative said.
He said Australia was also investigating South African allegations that Australian exporters or South African importers were under-invoicing sheep meat, allowing some mutton to escape the regular import tariff.
”We play by the rules, we just want to double check to make sure everyone is playing by the rules. We have no reason to believe they are not,” the representative said. – Reuters