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The long-running transtasman dispute over Australia's ban on New Zealand apple imports will continue, after Australia blocked in Geneva a World Trade Organisation investigation into the legality of the ban.
The Associated Press quoted trade officials confirming the Australia veto, but reported that a WTO investigative panel would almost certainly be set up when the WTO dispute body meets again early next year. A panel's establishment can be blocked only once under WTO rules.
In a statement to the WTO this month, New Zealand cited 17 Australian requirements for apple imports that it said breached international trade law.
The ban was first imposed in 1921 to prevent the spread to Australian trees of fireblight - a disease that damages apple trees and reduces their ability to produce fruit.
Australia said last year that it was investigating seven pests and diseases that it fears could enter the country on New Zealand apples.
- NZPA