NZ goes to world body over apple trade row

The Government is to go to the World Trade Organisation to try to force Australia to accept New Zealand apples.

It will be the first time this country has taken a dispute with its closer economic relations partner to the international trade body.

New Zealand apples have been banned in Australia for almost 85 years because of the presence of the disease fireblight in this country.

But in 2003 the World Trade Organisation - dealing with the same issue between Japan and the United States - ruled that fireblight was not transmitted by mature fruit.

"The science is clear but regrettably this whole process has dragged on too long," Trade and Agriculture Minister Jim Sutton said yesterday.

The Government will "inscribe" the issue on the agenda of the next meeting of the WTO's sanitary and phytosanitary committee.

The committee provides a setting for WTO members to raise issues about other nations' biosecurity trade measures.

The action stops short of taking a formal complaint to the WTO disputes committee for a ruling.

But it will send a clear message to Australia that New Zealand is serious about seeing the issue resolved, Sutton said.

And further action could not be ruled out.

"We're not going to stop until we get the right outcome," he said.

Following the WTO's 2003 decision forcing Japan to accept US apples, there were high hopes that Australia would open its borders to New Zealand.

New Zealand apple growers - struggling with the impact of the high dollar and low international prices - had hoped the Australian market could give the local industry a boost of up to $20 million.

A lobby group, called the Access Action Group, has been pushing the Government to take the case to the WTO.

About 700 growers plan to march on Parliament next Wednesday to highlight the issue.

Group spokesman Phil Alison said the latest move was a step in the right direction. But just going to the committee did not meet the industry expectations.

Growers still wanted to see a formal complaint taken against Australia.

"Our battle to gain access has taken 85 years and it has been locked up in committees - we've run out of patience," Mr Alison said.

The group is calling for the Government to take stronger action, including suspending all discussions on closer economic relations (CER) at both ministerial and official levels and withdrawing support for Australia as chair and as a member of the Cairns Group.

A spokeswoman for the minister said yesterday's announcement was not a reaction to the planned protest by growers.

The industry had been briefed about the plans several weeks ago, she said.

The minister had been working hard to push the issue forward but it had to go through a proper process.

Mr Sutton said this was the first time New Zealand had raised a trade issue involving Australia at the WTO, which was not a step to be taken lightly.

Blighted trade

* New Zealand apples have been banned in Australia for 85 years because of the disease fireblight.
* In a case between the United States and Japan, the WTO ruled that mature apples cannot transmit the disease, meaning they cannot be banned.
* The Australian Government is reviewing the ban but failed to acknowledge the WTO ruling in its draft report.
* New Zealand will join a long list of countries that have lodged trade issues involving Australia with the WTO.