Extract: Australia is a major producer and exporter of beef and veal. In 1982, Australia exported 628 kilotons of beef and veal valued at US $1,177 million. Half of Australia's beef and veal was imported by the United States and Japan. The Australian cattle industry depends on grazing; consequently, number of cattle, slaughter, and production have fluctuated considerably from droughts, diseases, cattle cycles, and changing export markets. The United States and Australia significantly affect one another's beef industries. The United States influences the Australian beef and veal industry indirectly through beef cycle price changes, and directly through the Countercyclical Meat Import Law. Australia will continue to compete strongly with the United States in beef export markets.