The American Sheep Industry Association policy requests the United States Government to address the unfair trade situation for U.S. sheep producers due to the production subsidies and import quotas maintained in the European Union. We can open up the European markets to take more of the pressure from Australian and New Zealand production or we can establish equitable measures for American producers. An additional issue that has been complicated by politics and market strategies is animal health. Mexico is the primary export market for American production, which is nearly all live sheep and lamb trade. From the peak of our exports in 1993 of approximately 830,000 head, live sheep exports have fallen to just over 250,000 in 1997.
Chile dominate the carcass exports to Mexico.
As the lamb and wool industry in America adapts to rapidly changing market conditions and struggling industry infrastructure, part of which caused by changing government policy, we cannot allow our lamb market to be driven below cost of production and expect domestic production to survive. Mr. Chairman, we appreciate your continued support and the opportunity to participate in this important hearing.