Exporters reassured by US ruling

By LIBBY MIDDLEBROOK

The future of New Zealand's fastest growing forestry export market remains intact after the US Federal Court dismissed an appeal to ban new import permits for unmanufactured wood products.

The appeal - filed by three US environmental groups last year - was dismissed by the Federal Court allowing New Zealand, Chilean and Siberian forestry producers to continue exporting unmanufactured wood product to the US.

"It's great news, I can't think of a bigger threat to what has been our fastest growing market over the last three years," said James Griffiths, chief executive of the Forest Industries Council.

The appeal relates to a long-running legal wrangle between environmental groups and the US Animal and Plant Health Inspection Service (Aphis).

In 1997, US District Court issued an injunction restricting unmanufactured softwood imports from New Zealand, Chile and Siberia because of allegations of pest and infestation risks posed by Aphis' biosecurity protection programme.

The ban, which was lifted last year, included logs, chips and lumber and was estimated to cost New Zealand exporters between $30 million and $40 million in new business.

Mr Griffiths said the latest appeal on the US District Court's decision to lift the injunction was dismissed after Aphis showed its import regime effectively managed biosecurity risks.

The environmental groups, who have about a month to lodge further appeals, are not expected to take any further action.