WTO ruling boosts NZ apple growers

Apples are rolled under the gate of the Australian High Commission by protesting Pipfruit Growers in Wellington this week. Picture / Fotopress

The World Trade Organisation's ruling that Japan could face trade sanctions of more than $200 million if it continued to ban American apples was welcomed by the Government yesterday as proof its stance on apple exports to Australia was correct.

Trade Negotiations Minister Jim Sutton said the ruling against Japan was "a complete vindication" of New Zealand's view that exports of clean, ripe apples did not pose a risk of spreading fireblight. Japan had failed to comply with an earlier ruling requiring it to bring its quarantine restrictions on apple imports into compliance with WTO rules.

New Zealand participated in the dispute as a third party and presented arguments and scientific evidence to the compliance panel.

The original case that the US took against Japan used the same scientific research by New Zealand presented to Australian officials in as-yet unsuccessful efforts to break an 84-year ban on New Zealand pipfruit. Sutton said the WTO's ruling would reinforce New Zealand's arguments in the apples dispute with Australia, which is being considered by the WTO next Wednesday.

"It's certainly a positive development, but no surprise to us," Sutton said. "We have long known that the scientific evidence on apples and fireblight does not support these sorts of restrictions."

Sutton said the ruling should also boost New Zealand's access to the Japanese apple market. "It's also an important message for Australia," he said.

"Authorities there are designing a system to enable our apples to be imported and they need to ensure that any protective measures are scientifically justified."

Pipfruit New Zealand chairman Ian Palmer said the decision was a "timely clarification".

"In the previous case on this issue, they determined that mature apples do not pose a fireblight risk. Now they have gone the extra step and said that no mitigating measures can be justified."

BLIGHTED TRADE

New Zealand apples have been banned in Australia for 84 years because of fireblight.

In a case between the US and Japan, the WTO ruled that mature apples cannot transmit the disease, so they cannot be banned.

Yesterday, the WTO reiterated its decision, threatening Japan with trade sanctions if it did not lift the ban.

New Zealand will raise the issue of the Australian apple ban with the WTO on Wednesday.