US to launch safeguard investigation into lamb imports
The United States Trade Representative (USTR) has recommended a safeguard investigation into lamb imports following a petition from the American Sheep Industry Association (ASI).
The investigation will be conducted by the US International Trade Commission (USITC), which will examine whether increased imports have damaged the US sheep industry or domestic supply and whether any trade measures such as additional tariffs should be considered.
Australia has been a long-term supplier of lamb to the US market. Meat & Livestock Australia (MLA), Sheep Producers Australia (SPA), the Australian Meat Industry Council (AMIC) and the Australian Government are working collaboratively to support Australia's participation in the investigation and ensure Australia’s interests are effectively represented.
At this stage, the investigation has commenced and no decisions have been made regarding potential outcomes. There has been no change to Australia's current market access or trading arrangements.
Below are answers to some frequently asked questions:
Who is the USITC?
The US International Trade Commission is an independent federal agency responsible for conducting trade investigations. In a safeguard investigation, it collects and examines evidence to determine whether increased imports are causing, or threatening to cause, serious injury to a US domestic industry.
Where appropriate, it may recommend safeguard measures to the US President. The President makes the final decision on whether any safeguard action will be taken.
Why has the investigation been initiated?
The investigation follows a petition lodged by the American Sheep Industry Association (ASI), which has requested that US authorities examine the impact of lamb imports on the domestic sheep industry. The investigation considers imports from all supplying countries and is not directed at Australia alone.
The USITC's role is to independently review the evidence and determine whether the legal criteria for safeguard measures under US law have been met.
What is Section 201?
Section 201 of the US Trade Act of 1974 is the safeguard provision that allows the USITC to investigate whether increased imports are a substantial cause of serious injury, or threat of serious injury, to a US domestic industry.
Unlike some other trade investigations, a Section 201 investigation does not require a finding of unfair trade practices, Instead, it focuses on whether the legal criteria requirements for safeguard measures under US law have been met.
What happens next?
The ITC will begin collecting information and testimony from interested stakeholders across the lamb supply chain.
As part of its investigation, the Commission is expected to:
- gather information from relevant stakeholders.
- review market and industry data.
- conduct public hearings.
- assess evidence submitted by participants.
- determine whether increased imports have caused serious injury, or threaten to cause serious injury, to the US domestic sheep industry.
If the USITC makes an affirmative determination, it will then consider what safeguard measures, if any, should be recommended to the US President. The President makes the final decision on whether any safeguard action will be taken.
How is MLA responding?
MLA is working closely with Sheep Producers Australia (SPA), the Australian Meat Industry Council (AMIC), government representatives and other industry stakeholders to support a coordinated Australian response.
The focus is on ensuring stakeholders are informed about the process, facilitating participation where appropriate, and contributing evidence that helps provide a comprehensive understanding of the Australian lamb industry’s role in supplying the US market.
View the full media release on the Australian lamb industry’s response here:
Australian Lamb Industry ready to respond to US safeguard investigation | Meat & Livestock Australia
What role does the US market play for Australian lamb?
The US has been an important market for Australian lamb for many years. Industry participants, supported by MLA and broader sector partners, have invested significantly in market development, consumer education, retail programs and foodservice promotions to grow demand for lamb as a category. These efforts have helped build awareness and consumption of lamb among US consumers and supported long-term growth in the market.
Can Australian stakeholders participate in the investigation?
The USITC is expected to seek information from a range of businesses and stakeholders across the lamb supply chain as part of the investigation process.
Participation will help ensure the Commission has access to a broad range of information when assessing the market and industry. MLA, in collaboration with industry and government partners, will provide updates and further information as details become available, including whether and how Australian supply chain participants can get involved.
What is the timeline?
The investigation is expected to proceed through several stages:
- Formal commencement of the investigation.
- Collection of information and testimony from stakeholders.
- Public hearings.
- ITC determination.
- if required, consideration of potential safeguard measures and recommendations to the US President.
- Decision by the US President on whether to implement any safeguard measures.
Under the statutory process, the ITC is generally required to reach a determination within approximately 120 days of commencing the investigation. This may be extended to 150 days where additional time is required.
