Trump to rule on tariffs for Australian lamb after trade commissioners disagree

A US trade panel reviewing Australian lamb imports into the United States has been unable to agree on whether the American industry has been hurt by the imports.

The rare tie-vote at the US International Trade Commission (USITC) means US President Donald Trump will ultimately decide whether to place tariffs or other trade restrictions on the Australian meat.

"A tie vote … means the president can decide which vote (affirmative or negative) he chooses the 'winning' vote," Georgetown University's Jennifer Hillman, a former USITC commissioner, told the ABC.

"[I] would presume, particularly in light of the plight of farmers in the US generally, that he would be inclined to treat this as an affirmative determination and impose tariffs or tariff rate quotas."

The next step in the process is a public "remedies" hearing to debate those measures before commissioners make final recommendations to the White House. 

The hearing will take place on December 1. Commissioners are due to make their recommendations to Mr Trump by January 11.

Australia has been warning the US that any new tariff would just push up prices for American lamb-eaters.

Most of the lamb imported into the US comes from Australia and New Zealand.

More than 100,000 tonnes of Australian lamb was exported to the US last year. It was valued at more than $1 billion.

Republicans back push for tariffs

The USITC has been investigating the issue since July. 

The probe was requested by US trade ambassador Jamieson Greer, one of the key architects and strongest proponents of President Donald Trump's tariffs policy.

Australian lamb exports are already subject to a 12.5 per cent tariff, along with many other Australian products.

Australia has been arguing against that tariff, saying it goes against the countries' free trade agreement.

It has also argued against any prospective new tariff on lamb.

Australia's ambassador in Washington, Greg Moriarty, told a recent hearing that Australian lamb was important to keeping prices low in the US.

'"Any action to restrict lamb meat imports would only increase costs for US con­sumers, reduce product avail­ab­il­ity and risk revers­ing the steady growth in US demand for lamb to the det­ri­ment of the US industry," he told the trade commission.

The investigation followed years of campaigning by lobbyists for US meat producers, who argued "surging low-priced imports" from Australia and New Zealand were hurting the domestic industry.

Dozens of Republicans in the US Congress backed their campaign. In a letter to trade officials in January, they argued foreign producers, "particularly Australia and New Zealand, have consistently taken advantage of our relaxed barriers and used them to undercut and infiltrate the US lamb market".